Scottish Friendly boss takes aim at Westminster over pension savings complacency

Scottish Friendly’s outgoing chief executive has taken a party short at both current and past UK governments for failing to do enough to encourage people to prepare adequately for their financial futures.

Fiona McBain acknowledged the pressure on household finances is likely to intensify, with inflation expected to rise and noted that Scottish Friendly has reduced its minimum savings amount to £10 per month, and to give the option for its members to save in on-off amounts, to encourage more people to save for the future.

But she insisted: “I don’t think governments have done enough.”

Ms McBain, who steps down from Scotland’s last remaining mutual at the end of this month after 11 years at the firm, said: “I think the nature of politics places an emphasis on the short term, rather than on the medium to long term. That goes counter to the statement that “yes, we need to help people to save for the future”.

“You need to think long term to do that, and it is difficult for governments to do that. The global economy is still in recovery from the back of the global financial crisis.”

Ms McBain said it was significant the savings industry had helped convince the three major UK political parties to include manifesto commitments to support mutuals and savings before the last General Election.

But she noted policy makers are in a difficult position. “It is difficult, I acknowledge that,” she said.

“But I don’t think that we as a society have done enough, and we need to do more. Governments need to do more.”