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A new report has revealed the welcome news that more Scots are saving for retirement, with 84% of people putting money aside compared to 75% last year.
Scottish Widows, which produced the report, has said the findings are testament to the success of auto-enrolment in getting more Scots saving at least something for later life. However, it also highlights that the number of people in Scotland saving adequately (at least 12% of their income) has stagnated at 58%, down slightly from 59% the year before and from 61% in 2016.
This slight decline over the last two years shows that for all its success, auto-enrolment is by no means a silver bullet in ensuring everyone in Scotland can look forward to a comfortable retirement, says the report.
This trend looks set to continue as 59% of Scots say it’s unlikely they’ll be able to save more in the next year than they do now. For many, this is not by choice, with more than a third (35%) saying the reason they’re not saving more into their workplace pension is simply because they cannot afford to.
“While it’s encouraging that more Scots are putting something aside for retirement, the fact that adequate savings levels have stagnated shows that auto-enrolment is not a silver bullet,” said Robert Cochran, Retirement Expert at Scottish Widows. “This year’s study shows some members of society are slipping through the net because of minimum earnings thresholds.”
“We want to see earnings thresholds scrapped entirely to let all workers benefit from employer contributions,” he added. “It’s vital that every single person in the UK is prepared for the rising costs of retirement, and removing these thresholds can help to do that.”
To speak to a member of our expert team about your pension, contact us today. We aim to ensure that you are satisfied with everything we discuss with you, and the decisions you make. All of our team members are expert Financial Advisers and can get you the help and peace of mind you need.
