Scottish Widows and other experts said they were calling on this group to re-engage with pension’s savings to ensure they prepare adequately for retirement. 

“It is important to note that life expectancy continues to go up. We need to get the public thinking about 20 years of retirement, and not about the 5 years of retirement their grandparents might have experienced, it’s particularly important that younger people understand this,” said Steve Webb MP, Minister for Pensions.

Scottish Widows Pensions Report reveals that there has been a dramatic drop in pension savings since last year and it is in fact at the lowest level since 2006. The Scottish Widows Pensions Index, which tracks the percentage saving adequately for retirement, has decreased from 54% in 2009 to 48% in 2010 and a fifth (21%) of people who could and should are saving nothing at all.

 At an event to mark the launch of the sixth annual Scottish Widows Pensions Report and discuss the issue of “Pensions in a new Parliament”, Scottish Widows highlighted its core recommendations to tackle the nation’s pension’s savings.

 The Scottish Widows Average Savings Ratio, which tracks the percentage of income being saved for retirement by UK workers not expecting to get their main retirement income from a defined-benefit scheme, is currently 9.2% (a drop of 1% from last year).  This falls almost 3% short of the 12% that Scottish Widows believe people should be saving to achieve a comfortable retirement.