PENSIONS savings in the UK have hit an all-time low, according to a new report.

In Scotland, just more than half of the population are saving adequately for their retirement, while across the UK only 46% are saving enough.

The figures, in the Scottish Widows eighth annual Pensions Report, show a five percentage point decrease on last year's figures and a fall of eight points from 2009.

Scotland is one of only two UK areas where more than half – 56%– are saving enough for their retirement, alongside Yorkshire and the Humber.

It is thought this could be due to the high number of Scots who work for large organisations in the public and private sectors.

The report also shows Britons want twice as much for their retirement as they will actually receive, putting expectations drastically at odds with reality.

The average level of annual income people feel comfortable about living on at the age of 70 has risen to £24,500.

Based on the low average saving levels, a saver retiring at 65 would receive just in excess of half the amount they feel they need.

Ian Naismith, head of pensions market development for Scottish Widows, said: "People are saving less for old age yet their expectations remain high as the majority fail to recognise the harsh reality of retirement."