Growing numbers of Scots in debt are facing a potential pensions timebomb on top of all their other money worries.
The warning comes from the Financial Conduct Authority (FCA) that says growing numbers of those struggling financially are facing the prospect of working into their 70s and 80s to make ends meet.
For Scots who are already struggling with money issues, the potential of having to work after the official retirement age is a realistic prospect sadly though it is possible to do something about it.
Indeed, the FCA’s research reveals that one in three of us aren’t paying into a pension and for those who are will rely on the state pension, then they could be disappointed.
The chief executive of the financial watchdog, Andrew Bailey, said: “Around 15 million adults who have not retired are not paying into a pension.
“While the state pension is important for retirement, for most people it will not maintain living standards.”
The average being saved is around 4.2% of wages but financial planning experts say we should be saving 12%.
Pensions timebomb for those who are not saving
The fears over a pensions timebomb for those who are not saving and who are already struggling financially will be compounded by an ageing population and the women’s pension age increasing to 65 from 60, so it will be the same retirement age for men.
However, by 2028, the pension retirement age will rise to 67 for everyone to help the country reduce its fast-growing pensions bill.
It’s likely that the retirement age will increase further over the coming years.
The reasons for this are that half of those aged between 55 to 64 will live until they are 90 but only 7% of them are predicting they will do so.
In addition, while many workers will have an employer’s workplace pension, the growing numbers of self-employed workers will not qualify for auto enrolment and cannot afford to save money for their retirement.
For those Scots who are struggling financially, then this may be a good point to talk with an experienced debt adviser about their prospects of resolving debts and being in a better place financially to prepare for their retirement.
Impartial help and advice about debt in Scotland
For impartial help and advice about debt in Scotland, then it will pay to speak with the friendly team at Scotland’s Trust Deed. They are available to speak with every day by telephone.
The debt advisers will be able to discuss options including a trust deed, a debt arrangement scheme and sequestration, which most of us know as bankruptcy.
It should be appreciated that the options for a trust deed and a debt arrangement scheme are only available to people living in Scotland and who have debts they want to resolve.
The big difference between a trust deed and the debt arrangement scheme is that with the former any amount of debt left after an agreed period will be deemed as unaffordable and written off; with the debt arrangement scheme the entire amount owed will be repaid.
There are other options available as well for people living in Scotland including negotiating a settlement with creditors, debt write-off and debt negotiation.
Team of debt advisers at Scotland’s Trust Deed
For more help and advice about how to resolve debts then speak with the team of debt advisers at Scotland’s Trust Deed about the potential routes available and, remember, this advice will be impartial so you do not have to follow it.