HALF of Scots pensioners are worried about running out of money in retirement as over a quarter of a million admit they have never sought any financial help over pensions.

New research has found that just over three in four (76%) of Scottish retirees did not seek any professional advice over their pensions leading to new calls for action to ensure that people are properly prepared.

The news comes following widespread reports of UK households struggling to make ends meet following high inflation – sending everyday bills such as energy costs soaring – as the country tries to recover from the effects of the Covid-19 pandemic.

The analysis of hundreds of Scots pensioners from Edinburgh-based abrdn, formerly Standard Life Aberdeen found that despite almost half (48%) of retired Scots admitting they are worried about potentially running out of money in retirement, hundreds of thousands have not looked for support.

Some 27% of retired Scots said that they had not spoken to someone because of the cost of advice, while one in five said it is because they believe only those who have a lot of money can benefit from professional help.

The largest active asset manager in the UK, said just over one in six (16%) say they simply "can’t be bothered" with the time and effort of seeking advice and one in ten (9%) say it is their lack of experience that puts them off.

The Pensions and Lifetime Savings Association trade group has warned that more than half of non-retired Scots say they cannot afford to save right now due to the rising costs of everyday living, leading to calls to force people to contribute more to their pensions.

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The trade association whose members are involved in designing, operating, advising and investing in all aspects of workplace pensions argues that looking beyond the uncertain economic outlook, the Government should increase the level of automatic enrolment contributions for workplace pensions to ensure that people have an adequate income when they retire.

They have suggested that there is a rise from today's minimum contribution of 8% of qualifying earnings to 12% of all salary.

Auto-enrolment was rolled out gradually from October, 2012 to tackle fears that many people were not saving for their old age, with the biggest employers coming on board first.

Workplace pension schemes are a way of saving for retirement through contributions deducted direct from your wages. For those eligible for automatic enrolment, the employer has to make contributions into the scheme.

In the last decade the scheme has seen millions of people brought into pension saving for the first time.

Concerns have also been raised that savers have been raiding pots intended for their first home or their retirement as the coronavirus pandemic squeezed finances last year.

Some £34 million in Lifetime Isa withdrawal charges were recorded in the 2020/21 tax year – more than three times the £10 million total the year before.

The sharp increase was recorded despite withdrawal charges being temporarily reduced between March 6, 2020 and April 5 2021.

Lifetime Isas, also known as Lisas, come with a 25% Government bonus.

They were set up specifically for people saving for their first home or their retirement. Savers withdrawing money for any other reason would normally face hefty withdrawal charges.

The temporary reduction in withdrawal charges meant that savers were able to generally get back all the money they originally put in, subject to any investment losses incurred by those with Lifetime Isas invested in stocks and shares.

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Shona Lowe, financial planning expert at abrdn, said “There’s a common misconception that financial advisers are reserved only for the wealthy – but this is simply not the case.

“Whether it be tax implications, managing ever-changing expenses, supporting loved ones or the very current concerns about the rising cost of living, speaking to an expert can set you up for a better retirement both financially and emotionally. A key part of that emotional wellbeing comes from having taken control of both your own financial future and that of your loved ones, and having the right support as you decide what’s right for you.

“That’s why we would urge anyone approaching retirement to seriously consider seeking advice. A financial adviser can make your money work as hard as possible and allow you to focus on enjoying your retirement years.”

Age Scotland has raised concerns that people might opt out of preparing for retirement just to make ends meet.

According to the Financial Conduct Authority (FCA), of the 674,000 pension pots accessed during 2019/20, the government-backed Pension Wise was used in just 14% of cases.

Pension Wise helps people aged 50 and over to make sense of their options, offering free, impartial guidance.

The FCA says that consumers describe pensions as a “minefield”, with even those who felt financially confident in other aspects of their lives struggling to understand how pensions work.

The abrdn research also highlighted that a gender gap is evident in those seeking advice, with women less likely to seek advice on their retirement plans in comparison to men.

Less than a fifth (19%) of women in retirement have spoken to a professional financial adviser, against a quarter (25%) of men. Only 9% of female retirees say they would contact their pension adviser with questions against 15% of men.

Ms Lowe added: “It’s alarming to see gender disparity and regional variations when it comes to seeing who is seeking advice on their retirement. As an industry we have a duty to change this by making advice accessible and demonstrating its value.

“Although there is a wealth of material available online, and speaking to those around you is often helpful, we want to encourage more people to consider the benefits that personalised financial and retirement advice could bring to them.”

A Financial Services Compensation Scheme study has shown that two-fifths of pension savers have never checked whether their money is protected by a body which compensates people when firms go bust.

If a pension provider or a financial adviser goes out of business, the FSCS san step in and pay compensation. Protection varies depending on the type of pension product.

The FSCS recommends people could ask their provider how much of their pot is protected and whether money transferred over from an existing protection would also be covered.

Their study found more than one in 10 (12%) people do not know when they last checked the balance of their pension pot and a fifth (20%) have never checked.