It is believed that the independence of Scotland will increase the risk of pension payments if the costs of a new country are passed on to the savers.

The Pensions Protection Fund (PPF) has raised concerns that some schemes might go bust in an independent Scotland as the EU order would mean that UK-wide schemes would be described as 'cross-border' and will have to be fully funded.

The National Association of Pension Funds (NAPF) has said that the pension savings could be eroded if the increasing cost of moving from UK regime to an independent Scotland, is passed on to the savers following declaration of independence next year.

The NAPF released a report outlining the potential impact of independence on pension savers. It identified four major areas including regulations and cross-border schemes where it sought more details from both the Scottish and UK governments. NAPF wants the two governments to clarify their positions ahead of the referendum next year.

It was critical over how the pension regime under Scottish independence would work and if the substantial costs will be passed on to the savers. It said that people should be of aware of the cost of independence and a grace period must be allowed to facilitate transition.