The study, from PriceWaterhouseCooper, found that someone starting work today aged 22 will need to save a total of 15 per cent of their annual salary towards their pension in order to reach their desired retirement income, of face a funding shortfall. Pensions’ analysts found that one of the biggest reasons that people are not saving more into their pension is that the system is too complex and they do not understand it. Almost half of Scots surveyed cited this as a reason, rising to two thirds of younger workers. The research reveals that Scottish workers would like a retirement income of around £19,782 per year – marginally higher than workers in North East of England, Northern Ireland and Yorkshire & Humberside. However, the majority of people won’t reach this level based on their current contribution levels. On average, Scottish workers are only saving five per cent of their salary towards their retirement with average employer contributions just marginally higher at six per cent, leaving them an average shortfall of £4,000 a year. Alison Fleming, head of pensions at PwC in Scotland, said: “Our research shows a real disconnect between people’s pension pot expectations and what they are putting into the system. In short, the majority simply aren’t contributing enough and more often than not this is down to a basic lack of understanding of the system. “If we are to incentivise people to invest their hard earned money into their pension, then the system needs to not only be much simpler to understand but trustworthy and sustainable.”