Three quarters (75 per cent) of Scots aged between 40 and 66 (pre-state pension age) feel unprepared for retirement, with one one in seven (14 per cent) having no retirement savings at all, research from Phoenix Group has revealed.

The group pointed out that whilst some of this group, which represents around 1.5 million people, have decades to prepare, others will be looking to transition or enter retirement imminently.

Financial concerns were an “overwhelming” driving factor behind this feeling of unpreparedness, as nearly seven in ten (69 per cent) said they are concerned they will not have enough savings to fund their retirement.

But these concerns may be well placed, as the research showed that just one in twelve (8 per cent) Scots say they have savings over £300,000, the amount needed to achieve a “moderate” standard under the Pensions and Lifetime Savings Association's (PLSA) Retirement Living Standards, while one in seven (14 per cent) have no retirement savings at all.

Regional breakdowns also revealed wide saving differences across Scotland, with people in Glasgow reporting the highest level of under saving, as more than half (52 per cent) of over 40s in Glasgow had less than £51,000 in retirement savings, while 20 per cent have no retirement savings at all.

In addition to this, Diffley Partnership founder and director, Mark Diffley, pointed out that women, those in lower social grades, and those in more deprived neighbourhoods are particularly vulnerable, approaching retirement age with significantly less saved than their peers.

“Such discouraging findings require decision-makers to take notice and action, to ensure that everyone enters retirement with funds to live comfortably," he stated.

This was echoed by Standard Life director for workplace pensions, Gail Izat, who argued that it is "vital that we extend pensions auto-enrolment to bring more people into the scheme and give those who are already eligible a better chance of securing a decent retirement".

“This research highlights the worrying level of under saving in Scotland and, sadly, we know the situation is similar in the rest of the UK," Izat continued.

“The fact that a fifth of Glaswegians report no private retirement savings has wider societal implications, particularly as the state pension by itself falls short of even the PLSA’s minimum standard of living in retirement.

"Last year parliament passed a bill to lower the minimum age to qualify for auto-enrolment from 22 to 18 and abolish the lower earnings limit for contributions.

"We urge the government to implement these changes as quickly as possible. Longer term, increasing minimum auto-enrolment contributions, when the economic conditions allow, is the single biggest lever we can pull to boost savings adequacy."

Adding to this, Phoenix Insights director, Catherine Foot, pointed out that whilst people often have competing priorities when it comes to money, "it will always be important for people to ensure they don’t overlook their long-term savings and take steps to plan for their future retirement income where they can."

“Often just thinking about your future finances can be the hardest step, but a good place to start is to seek guidance from your pension provider if you have one, or free online services such as MoneyHelper," she added.

"Without taking action to plan ahead, people are at risk of sleepwalking into retirement short of enough savings to fund it."

However, she acknowledged that not everyone will be able to save more, arguing that it is "vital" that there is an adequate financial safety net from the state to support people in the years prior to and beyond state pension age.

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