Scots 'ignorant' of pension pots

Published on Tuesday 12 August 2008 21:23

ALMOST four in ten Scots nearing retirement have no idea how much income they will get from their pension savings.

Research published today by Aegon UK reveals that, while 35 per cent of Scots between the ages of 50 and 65 anticipate getting less than 10,000 a year from their pension savings in retirement, 39.6 per cent don't know how much annual income their combined pension pots will provide.

Overall, Scots between 50 and 65 are less optimistic about retirement compared with their counterparts elsewhere in the UK, with a quarter viewing it as the start of old age, against 11 per cent in south-east England and 13 per cent in the north-east of England. More than one in ten believe they will have no choice financially but to keep working beyond the retirement age and 9 per cent say they are not looking forward to retiring.

Across the UK, the research found that, although 42 per cent of 50- to 65-year-olds don't know how much retirement income to expect and 20 per cent have no pension provision at all, 86 per cent believe they'll have enough to get by on if they stop working at retirement age.

Rachel Vahey, head of pensions policy at the Edinburgh-based insurer, said a lack of planning was the chief reason for the low awareness.

"The best way to enjoy and plan for your retirement is to know what your expected income is," said Vahey. "People receive yearly updates from their pension plans giving this information so it's easy to keep on top on this. In a way the level of retirement income isn't the most important aspect – it's making sure that people aren't surprised to find out how much they have to live on."