Pension savings are not enough, insurer warns

Almost half of people are failing to save enough into a pension to have a financially comfortable retirement.

And 20 per cent of those who are not saving enough are failing to save anything at all, according to life insurer Scottish Widows.

The study, which looked at people aged between 30 and state pension age who earned more than 10,000 a year, found that only 51 per cent of people were paying enough into a pension each month.

People who are not members of final salary pension schemes are saving an average of 9 per cent of their income into a pension each month, only three-quarters of the 12 per cent of pay that Scottish Widows estimates people need to set aside.

Overall, the group estimated that people should save an extra 58 a month on average in order to have enough money during retirement.