Scots most confident in UK of working until retirement - but there is a catch

Scottish workers have emerged as the most confident in the UK that they can stay in work until retirement age.

Meanwhile, Scots rank towards the middle for job satisfaction, but financial security and economic activity remain in the bottom half, according to Phoenix Group’s new “employment index”.

The research ranks Scotland fifth in the UK for overall employment, but Scots lead the way in having the confidence they will remain in work into later life.

The research does note that 17 million people across the UK are not saving enough for retirement.

The index, created by Phoenix Group, owner of the Standard Life brand, is based on a combination of 13 metrics drawn from research among 6,000 working UK adults and Office for National Statistics (ONS) data. It ranks UK countries and regions across four categories - job satisfaction, confidence in ability to be in long-term employment, financial security and economic activity levels.

The savings and retirement firm said Scotland’s first place ranking for long-term employment confidence was driven by strong worker sentiment around job security. It noted that, given Scotland’s population is ageing faster than elsewhere in the UK, it was encouraging that 89 per cent of Scots feel confident they can remain in work until at least age 60 - the highest percentage of any UK area.

Some 57 per cent of those questioned north of the Border think they will be able to stay in work up to age 70, joint first with the north east of England.

Catherine Foot, director of Phoenix Insights, the group’s longevity think tank, said: “Scotland’s strong ranking for employment confidence shows that people feel secure in the knowledge that they will be able to stay in work into later life. This will have a huge impact on their ability to save for their retirement.

“The findings show that Scotland does, however, face challenges around lower financial security and rates of economic activity. To drive economic growth and ensure fulfilling work for all, we need better access to employment support services at a local level, so people do not continue to fall between the cracks in our economy.

“It’s crucial that local areas have the appropriate powers to shape employment and skills support for the needs of communities, working closely with local employers and other key services. A one-size-fits-all approach across the UK won’t address the unique needs of different areas.”

Gail Izat, managing director for workplace and intermediary at Standard Life, added: “Ensuring people across Scotland have access to stable, fulfilling work for as long as they need or want is key to addressing the pension under-saving crisis. The ability to work and save for longer can make a real difference to financial security in later life.

“With 17 million people [across the UK] already not saving enough for retirement, good quality, sustainable employment is vital to closing the pension savings gap, as well as improving economic growth and productivity across Scotland and the UK.”

The employment index was created by Opinium Research for Phoenix Group. The final index has been calculated as the straight average of the four group indices.

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