On average, Scots think they need £478,000 in their pension pot and an annual income of £33,000 for a comfortable retirement. However, RBC Brewin Dolphin’s pension barometer reveals that a 67-year-old retiree with a full state pension required a pension pot of just over £630,000 in March 2023 to provide them with a comfortable retirement income due to the rising inflation and cost of living crisis.

To build a substantial pension fund, Thomas O’Brien, financial planner at RBC Brewin Dolphin’s Glasgow office, suggests starting early and benefiting from compounding returns.

A 40-year-old with a pension pot of £120,000 today would need to put approximately £720 per month into their pension with a 5% growth after charges in the RBC Brewin Dolphin balanced portfolio to retire with a £630,000 pot. A 50-year-old with a pension pot of £180,000 would need to put approximately £1,200 per month into their pension with the same assumptions.

Mr O’Brien advised that determining what constitutes a comfortable retirement is highly subjective and recommended running through expenditure and lifestyle goals to get a clear picture.

Mr O’Brien said: “Worryingly 77% of people in Scotland don’t think they have enough in their pension pot to retire. Whilst lots of people might feel like their pension saving is not on track, there is still time and it’s worth bearing in mind that income in retirement can come from other sources, not just your pension.

“So, if your pension pot is not as big as it needs to be, you might be able to supplement your income with other savings and investments including any cash savings, ISAs or property for example.”

“Our findings indicate that only 46% of people in Scotland have reviewed their pension in the last year and over 44% of those in the crucial years (aged 45 to 54) haven’t, so you may believe your pension is on track but sometimes even the best laid plans can hit a bump in the road.

“Regularly reviewing your pensions and investments, as well as the income that can be taken from them in retirement is essential as the earlier you can make changes the more manageable they are likely to have to be.”

He concluded: “The combination of stock market volatility and rising inflation makes this a particularly challenging time for those coming up to retirement.

“The only way to truly understand the impact of market downturns and inflation on your retirement plans is to get some smart advice to navigate your way to a comfortable retirement.”