As insurer Aegon seeks to cut a quarter of its UK costs, hundreds of jobs in Scotland's finance sector are running at a risk.

The Dutch Company is to refurbish its pension products, which could see 600 job cuts at its UK headquarters in Edinburgh.

The degree of the proposed changes was a blow, said Aegis, the union representing Aegon staff. Much of Aegon's British business was assembled on Scottish Equitable, which it bought 16 years ago.

Announcing a major change to the products it offers, Aegon ended rumor that it will sell that British business. This will concentrate on business pension schemes and investments for those impending retirement.

Aegon though still is not very sure about the number of job cuts but as its life and pensions division has 2,400 staff in Edinburgh, about 600 of them could go. There are also 670 staff at Lytham St Annes, Lancashire, and 630 in sales roles across the UK.

"In the United Kingdom, Aegon will take significant steps to improve return on capital by targeting cost reductions of 25% in life and pensions and refocusing the business on the growth market segments of At Retirement and Workplace Savings where Aegon has leading positions”, the Company said.