A PENSIONS firm has backed the decision to appoint Britain's youngest MP on a committee dealing with the issue - claiming it would help provide a better understanding of why young people are not saving more towards retirement.

Paisley and Renfrewshire South SNP MSP Mhairi Black, 20, will participate in the Work and Pensions select committee.

It was warmly welcomed by a senior figure at pensions provider Aegon UK.

Steven Cameron, Regulating Strategy Director at Aegon UK, said: "We're keen to see people engaging with pensions at a younger age, so we hope Mhairi Black will use her appointment to the Work and Pensions Select Committee to bring a younger perspective to the discussions and decisions made by the committee.

"Our recent Readiness Report revealed that younger people are disengaged with their pension savings, with seven in ten 16-24 year olds never having done anything to review their plans for retirement.

"This age bracket also has the most unrealistic expectations when it comes to retirement income, hoping to retire with a yearly income of over £63,000 a year when in fact the majority of people are on course for an income of around £12,000."

Ms Black, who defeated Labour frontbencher Douglas Alexander in May's election, last week graduated from Glasgow University with a first-class honours degree in politics.

She wrote on Twitter that she was 'delighted' by her appointment.