"We have done the necessary testing and modelling and can demonstrate that... this approach could provide a secure financial future for millions of people into old age."
In a statement today, the firm said that "while some critics may argue this further depletes the long-term savings of young people, it is advocating for further changes that will increase savings levels overall to account for this".
Scottish Widows is calling for the age at which people become auto-enrolled to be reduced to 18 alongside an increase in minimum contribution levels to 15% by 2030, with employers and employees continuing to share the cost.
It also wants to see an annual government top-up of £500 – similar to the model used in Help To Buy and Lifetime ISAs.
Research from Scottish Widows found that more than 3.5 million young people want access to their long-term savings to help them get onto the property ladder.
In the survey, 38% of under-30s also said they would save more into their pension if they could access savings as a one-off to help fund a deposit on a first home.
Pete Glancy, head of policy at Scottish Widows, said: “Property ownership is a national obsession, but it is also a long-term investment that could support people into old age, either by avoiding expensive renting costs or providing a source of equity. We should recognise the fact that many young people will prioritise getting onto the property ladder ahead of saving into a pension, despite the powerful positive impact of compound interest by saving at an early age.
“This is a radical idea. However, we have done the necessary testing and modelling and can demonstrate that, alongside our other proposals to increase overall savings levels, this approach could provide a secure financial future for millions of people into old age.
“This policy is focused on helping young people to move from renting, not to increase demand for housing. Of course, we still require appropriate government policies to ensure an adequate supply of housing and improve affordability.”
