More Scots saving for retirement but many still not putting away enough – Scottish Widows

This is up from the 75 per cent recorded last year and hails the success of auto-enrolment in getting more Scots saving at least something for later life.

However, the number of people in Scotland saving adequately (at least 12 per cent of their income) has stagnated at 58 per cent, down slightly from 59 per cent the year before and from 61 per cent 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. Situation unlikely to improve.

This trend looks set to continue as six in 10 Scots (59 per cent) 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 per cent) saying the reason they’re not saving more into their workplace pension is simply because they cannot afford to. It is therefore not surprising that just three in 10 people in Scotland feel optimistic about their retirement, down from 35 per cent last year. UK adequate savings levels stagnate for fourth year.

Meanwhile, savings levels across the UK as a whole have also stagnated.

At 55 per cent, the proportion of UK workers saving adequately for retirement has dropped slightly for the first time since 2013, falling from 56 per cent, the prevailing rate for the last few years.

Despite adequate savings rates having risen by 10 per cent since auto-enrolment was introduced in 2012, the stall in recent years demonstrates that a renewed effort is needed to improve the nation’s readiness for retirement.

Robert Cochran, retirement expert at Scottish Widows, said: “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. 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. 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.”