Three out of four Scots on the brink of retirement feel unprepared - this is why
Three quarters of middle-aged Scots are approaching retirement age feeling unprepared, equivalent to nearly 1.5 million people, a new study has warned.
The research from Phoenix Group, the long-term savings and retirement business that encompasses Standard Life, found that 75 per cent of those aged between 40 and 66 (pre-state pension age) feel they are unprepared for retirement. While some of this group may have decades to prepare, others will be looking to transition or enter retirement imminently.
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Hide AdFinancial worries are overwhelmingly the driving factor behind this sense of feeling unprepared. Some seven in ten (69 per cent) of people are concerned they will not have enough savings to fund their retirement.


Gail Izat, managing director for workplace pensions at Standard Life, said the findings highlighted the “worrying level of under-saving in Scotland”.
Over 40s were asked to estimate how much they have saved for retirement. Mapping this against industry benchmarks revealed the severity of under saving in Scotland, and the regional differences in the amount people have saved.
It is generally recommended that adults have a minimum of £300,000 in savings at state pension age to achieve a “moderate” standard of living in retirement - defined as the ability to access a range of opportunities and choices, and have a sense of financial security. Just one in 12 (8 per cent) Scots said they had savings over that threshold. In comparison, one in seven (or about 14 per cent) said they have no retirement savings at all.
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Hide AdA regional breakdown of the findings showed wide savings differences across Scotland, with people in Glasgow reporting the highest level of under saving. More than half (52 per cent) of over 40s in Glasgow say they have under £51,000 in retirement savings, and a fifth (20 per cent) say they have no retirement savings at all.
Izat said: “The fact that a fifth of Glaswegians report no private retirement savings has wider societal implications, particularly as the state pension by itself falls short of even the [recommended] minimum standard of living in retirement.
“It’s vital that we extend pensions auto-enrolment to bring more people into the scheme and give those who are already eligible a better chance of securing a decent retirement. Last year, parliament passed a bill to lower the minimum age to qualify for auto-enrolment from 22 to 18 and abolish the lower earnings limit for contributions. We urge the government to implement these changes as quickly as possible.
“Longer term, increasing minimum auto-enrolment contributions, when the economic conditions allow, is the single biggest lever we can pull to boost savings adequacy.”
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Hide AdThe research was conducted in conjunction with the Diffley Partnership, whose founder and director Mark Diffley added: “This comprehensive survey reveals that a significant proportion of Scots are unprepared for retirement, with little saved to furnish a decent standard of living in their older years. Women, those in lower social grades, and those in more deprived neighbourhoods are particularly vulnerable, approaching retirement age with significantly less saved than their peers. Such discouraging findings require decision-makers to take notice and action, to ensure that everyone enters retirement with funds to live comfortably.”
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