Scottish Widows highlights pension concerns

20 September 2007
More than 1.5 million over 55s say they will have to carry on working after reaching the state retirement age as they have not saved enough for old age, new Scottish Widows figures show.

A lack of savings means 26 per cent of those over the age of 55 will have to delay retirement, a survey by the financial services provider shows.

For four in ten of this age group, receiving a state pension will not be enough to allow them to continue living the life they are used to.

Ian Naismith, head of pensions market development at Scottish Widows, commented on what he called the division between haves and have-nots in the over 55 age group.

"The haves generally have good employer pensions, often based on their final salary, and can retire at or before state pension age with good incomes," he explained.

However, Mr Naismith noted that the have-nots are discovering they have to carry on working for longer than they had planned, "just to make ends meet".

Recently, EveryInvestor claimed that tax incentives for pensions need to be improved in order to motivate basic rate taxpayers to save for retirement.

Learn more about early retirement and get pension advice