Large numbers of Scots are facing a crisis of confidence over their retirement plans, with research revealing that one in three fear they will have to continue working to make ends meet.
Experts warn that many Scots could end up poverty-stricken after stopping work and have called for more guidance to be put in place to help people plan ahead for their later years.
According to a new survey, more than half of Scots do not have any plans to financially support themselves in retirement – despite 62 per cent of those asked saying the state pension will not be enough.
- READ MORE: Making a clear position on pensions
The research, by polling firm Censuswide Scotland, also showed that even those with private pensions are worried about the future, with one- third saying they do not believe it will be able to support them.
Age Scotland described the findings as “worrying”, while Citizens Advice Scotland (CAS) said it was vital that Scots seek advice on planning for the future.
CAS policy manager Mike Holmyard said: “Too many people are at risk of living in or close to poverty when they retire. Less generous pension schemes have to stretch further as people are living for longer post-retirement.
“Auto-enrolment is welcome, but will not solve the basic problem of low levels of pension saving.
“We would urge everyone to seek free, impartial and confidential advice from their local Citizens Advice Bureau, so they can make informed choices and plan effectively for their retirement.”
Mr Holmyard added that CAS is also becoming more aware of people dipping into their pension pots while working as a result of falling into debt.
“Our advisers are also increasingly hearing from people who are considering accessing their pension funds to solve debt problems, at the expense of their retirement income, which of course brings the risk of long-term financial problems,” he said.
Age Scotland argued that Scots should be offered a “career MOT” at age 50 to allow them to “make informed choices about training, pensions provision and future career options”.
Brian Sloan, chief executive of the charity, said: “Right now more than half of older people age 65 and over have not retired because they aren’t ready to stop working.
“However, it’s worrying to hear that more than six out of 10 Scots don’t think their state pension will financially support them through retirement and that more than half do not have any plans to financially support themselves through retirement.
“There’s a clear need for more guidance to help people plan ahead for their working life and retirement.”
Mr Sloan added that the number of older workers is increasing faster in Scotland than the rest of the UK and called for employers to do more to support them.
“It makes sense to invest in older workers, who bring a wealth of experience and skills and can provide valuable mentoring to younger generations,” he said.
The new full state pension is currently £164.35 per week, however the actual amount you get depends on your national insurance record.
Under current UK Government plans, the state pension age will eventually extend to 68 for both men and women.
However, the Censuswide survey showed that 88 per cent of Scots believe it will continue to increase beyond this.
The data also revealed that more than a quarter of Scots do not have a private pension, with this breaking down into 17 per cent of men, compared to 33 per cent of women.
Of those Scots who do have plans in place to support themselves financially in retirement, the majority plan to use savings to fund their lifestyle, while others plan to sell their homes or other assets.
Jordan Ferguson, of Censuswide Scotland, said: “Our research indicates that Scots, of all ages, have growing number of concerns about their retirement.
“The younger respondents polled seemed apprehensive that retirement age would continue to increase.
“While older respondents raised a number issues around financing their retirement.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel