A UK-wide survey carried out by the firm found that only 3% of Scots were happy to take a risk with their money to secure greater returns, compared with an average of 9% across the UK and a regional high of 14% in Yorkshire and Humber.

Wren Sterling, which has more than £3.6 billion in assets under advice, said its findings revealed Scots are ruining their chances of a comfortable retirement. It said Scottish savers are doing nothing to make their and their employers’ investments work for them – a situation “compounded by the volatility of investments during the coronavirus pandemic”.

Figures from the Pensions Regulator reveal that 95% of employees are invested in their workplace pension’s default fund.

According to Wren Sterling, many of these employees are unlikely to have reviewed the suitability of the fund against their individual circumstances. Just 36% of the Scottish employees surveyed by the firm had sought financial advice from a professional.

One- third (33%) said they didn’t need financial advice, with a further 31% citing the cost of such advice as prohibitive and 17% saying advice was only for the wealthy.

Nick Moules, head of marketing at Wren Stirling, said: “The UK Government has done a great job in making employees save for their retirement through compulsory workplace pensions but it’s not enough.

“To benefit from the tax incentives and to make their pensions work harder for them, people need help to understand the range of funds or investments they are currently invested in and to evaluate whether these are the most suitable options to maximise returns throughout their working life.

“The coronavirus pandemic makes financial advice even more important because people saving for retirement will have seen the value of their investments fluctuate over the last six months.”

He added: “Where the equity markets have had this kind of shock in the past it has been usually followed by a period of strong growth.

“In 2008 there was a bear market, which means a fall of more than 20%, that lasted for 1.3 years, which is just a blip for long-term pension savers. In 2000, when the dotcom bubble burst, there was a bear market for 2.4 years but it returned strongly afterwards.

“Investors need financial advice that reassures them through these periods, and makes sure their money is in a place where it could benefit from the growth and seek to minimise losses.”

To understand how employees feel about investing their pension money, Wren Sterling asked workers to pick between four investment scenarios for a £100,000 lump sum investment.

The answers revealed the highest number of Scots would choose the investment option which presents the least risk to their capital but also offers the lowest potential returns.

Mr Moules continued: “Getting a retirement savings strategy right now and aligning it to individual circumstances means people have a better chance of being better off in retirement and achieving the retirement they dream of.”