NEARLY three in five people are saving adequately for their retirement - marking the highest proportion recorded in 15 years, a report has found.
Some 59 per cent of people surveyed in the 15th annual Scottish Widows retirement report were deemed to be saving enough for later life - the highest percentage it has seen.
But more than a fifth (22 per cent) of people think they will never be able to afford to retire.
Scottish Widows generally considers people to be saving adequately for retirement if the equivalent of 12 per cent or more of their income is being put aside.
A year ago, 55 per cent of people were found to be saving adequately.
The report said gradual increases in the minimum contributions allowed into workplace pensions under automatic enrolment appear to have been having a positive impact on people's savings habits.
But 17 per cent of people are still saving nothing for later life - a proportion unchanged from a year ago.
Those who think they can never retire have an average income of £21,500 a year - significantly below the UK average salary of £27,396.
They are also more likely to have faced a financial emergency such as an unexpected bill or income fall in the past, with 86 per cent having experienced this compared with 67 per cent of people generally.
The report which surveyed more than 5,000 people also found a big fall in the proportion of under-30s who are not saving enough for retirement.
Four in 10 (40 per cent) 22 to 29-year-olds are now saving adequately - up from 30 per cent in 2017.
Peter Glancy, head of policy at Scottish Widows, said: "One in five people say they'll never be able to retire.
"With no further step-ups in auto-enrolment contributions planned, this is a timely reminder that bold action must be taken to ensure no one has to face the spectre of poverty in their later years."
