NEARLY 40% of Scots are "undersaving" for their retirement.
The latest pension survey by Scottish Widows found that 39% of those who could afford to put enough aside for their old age are not doing so.
The figure compares with a UK average of just 14% – making Scots, once famed for their canniness, the least prepared people in Britain for retirement.
Some 13% of Scots polled by Scottish Widows were not saving for retirement at all, even though they could afford to do so.
Many were instead using any spare cash to pay down debts or mortgages or support their children. The survey even found 16% of Scots had prioritised holidays over saving for their pensions.
Ian Naismith, a pensions expert at the Edinburgh-based company, said high property prices meant more people were buying their homes later in life, meaning they were still paying off debts in middle age rather than saving for retirement.
He said: "Scottish savers are being hit with a triple-whammy of, first, continued economic uncertainty making it difficult to save for the long-term; secondly, the age of first-time buyers rising as we face troubles getting on the property ladder; and, thirdly, an ageing population.
"These factors combined create a perfect storm for those heading towards retirement. While we are becoming more aware of the need to save for retirement, we must do more to ensure that we have a comfortable old age."
The latest survey, of more than 5000 people across the UK and 400 in Scotland, is the ninth carried out by Scottish Widows.
The company reckons anyone saving less than 12% of their income for retirement is not putting enough aside. The retirement saver will have a pot of around £117,000, enough for an income of just £3700 a year. On top of the state pension that means they will bring in less than £1000 a month in retirement.
Yet despite this, Scots believe they would need an income of £24,500 a year at 70 to be comfortable. That compares with £22,600 in 2011.
Mr Naismith said: "Scotland has the highest percentage of inadequate savers, yet expectations for income in retirement are increasing.
"To meet these aspirations, an average saver would need to save £12,000 a year, or £1000 per month. As a nation, we must either prioritise saving for the future and prepare accordingly, or seriously adjust our outlook for old age."
The UK Government's Pensions Minister Steve Webb said: "We know that people are not saving enough for their retirement.
"Only 30% of private sector workers are members of a pensions scheme and this must change. We have introduced automatic enrolment to help take the hassle out of saving and opened it up to those aged 22 and over to ensure the habit of saving starts early.
"We are restoring clarity to the state pension so people will know exactly what they will get in retirement and how much they need to save on top to achieve the lifestyle they want in the future."
Labour's Shadow Pensions Minister Gregg McClymont said: "This report is a wake-up call for all working-age Scots that we need to think ahead and prepare for retirement.
"A million Scots are being automatically enrolled into workplace pensions, saving for the first time. For the policy to be a success, every new saver must be offered a value-for-money pension.
"The UK Government should act now to ensure we all have the chance to save into pensions people can trust."
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