Scots could be 'storing up pension problems'
A lack of inclination to save could hurt the people of Scotland should the government decide to reform public sector pensions.
People in Scotland would be worst affected should the government take action on the growing need for public sector pension reform.Research conducted by independent pensions expert Stewart Ritchie on behalf of Aegon shows that a disproportionately high number of Scots work for the state, making them less likely to have been affected by the move from defined benefit to defined contribution pensions.
Nearly one in four (24.9 per cent) Scottish workers are employed in the public sector, which compares favourably with the one in five (19.7 per cent) figure seen throughout the rest of the UK.
However, Mr Ritchie's report suggests that Scots will not be able to isolate themselves from the pensions crisis for too much longer as politicians will be forced to take action to address an ever-worsening public sector pensions deficit.
This means that growing importance will need to be placed on saving and investment, and it is in this area that Scots lag behind the rest of the UK.
According to the survey, 42 per cent of Scottish households have no savings or investments at all, with even those earning more than £30,000 a year having an alarming propensity to subscribe to the buy now, pay later culture.
As a result, Mr Ritchie has called on Scots to return to their "traditional values" of thrift and prudence.
"Scots haven't been putting away enough money in the good years and there's a clear evidence of a worrying lack of 'rainy day' savings," he commented.
"The higher proportion of Scots employed in the public sector may have cushioned many from the shocks of inadequate pension saving but this could simply be storing up problems for the future."
Future governments are likely to have to address public sector pension costs, which could hit Scots harder than people in the rest of the UK.
Earlier this week, AXA warned that the UK was heading towards a "pensions dark age" due to an overreliance on state pensions in retirement.
Written by Ted Maul
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