Pension freedoms spark Scots savings rise but much more still needs to be done - Aegon

Since new pension freedoms were introduced two years ago, nearly half a million Scots are saving more for their retirements, according to new survey findings from Aegon UK.

The Edinburgh-based life insurance, pensions and asset management firm’s research has revealed that 13 per cent of working age people in Scotland were contributing more into their pension as a direct result of the freedoms.

However, while more than a quarter (26 per cent) of Scots have checked their plans in the past six months alone, Aegon UK, which employs more than 2000 at its HQ in the capital, said nearly a third have never reviewed their pension savings.

Aegon UK pensions director Steven Cameron said: “All the signs point to the pension freedoms having paved the way for a smoother road to retirement for Scottish pension savers. People are contributing more to their pensions, engagement is on the up, people are becoming more realistic about their future retirement income and they are taking action to achieve it.

“It seems that giving retirees the freedom to do as they please with their money is having an impact not only on those who are taking advantage of that freedom today, but the trickle effect is positive down the generations.

“However, there’s still a long way to go. People will need to accelerate their saving if they want to take the retirement high road.

“A third of the working age population in Scotland have never taken any action that affects their plans for retirement and these people must be encouraged to engage and save more, or face a very uncertain future.”

He added: “Check with your pension scheme or provider to make sure you make full use of what’s available.”