The pension plans of Scottish savers have been more affected by the past five years of political and economic turmoil than any other part of the UK.
The survey of 3,000 UK consumers in several major areas of pensions and retirement asked: “In the last five years we have been through a number of crises, including the Covid pandemic and cost of living challenges. How have these challenges affected your pension planning?” In Scotland, 24% said they have saved less than expected as a result. This is more than in any other of the home nations where 15% in Wales, 20% in England and 22% in Northern Ireland have saved less than expected.
Yet, as far as value of pensions savings, Scotland actually aligns very closely to the UK average. The current value of the average pension pot in Scotland is £179,621 compared to £180,212 across the UK. Meanwhile their target income in retirement is £30,502.8pa, slightly higher than average UK average of £30,050.2.
Triple Lock
Meanwhile, more Scots believe the triple lock should be kept in the long-term than those based in any other nation of the UK. Currently, 67% do not want to see any changes to the triple lock compared to 62% across the UK as a whole.
Respondents were also asked if the triple lock should still be kept for the next ten years and the gap between Scottish attitudes versus the rest of the UK grew. 61% of Scots thought it should still be kept compared to 55% across the UK.
Retirement Review’s Matthew Morris said: “While there were not many areas of significant divergence between Scotland and the rest of the UK, the effect on savers appears to be perceived most negatively in Scotland. Meanwhile middle-aged Scots are also more adamant about keeping the triple lock in place than elsewhere. If they are to hit their target income in retirement, a reliable, stable state pension will be essential to achieving those goals.”
The full report with adviser and pension provider insights can be found here.