25 UK employers sign up to Living Pension Scheme
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Leading UK employers have signed up to provide enhanced pension benefits through the innovative Living Pension scheme launched in 2023, helping combat widespread pensioner poverty.
- Over 25 UK employers have now committed to help their workers save enough for a decent standard of living in retirement with the Living Wage Foundation’s Living Pension scheme.
- Sackers, a specialist law firm to the pensions and retirement industry, is the latest employer to commit, joining others such as Aviva, Wealthify, Phoenix Group, SSE and Herbert Smith Freehills.
- The Living Pension scheme aims to tackle low pension-saving amongst workers which sees 4 in 5, or 16 million, not saving enough each year to prevent poverty in retirement.
A scheme aimed at tackling pensioner poverty by helping workers save enough for retirement is gaining support, with over 25 employers now signed up to provide a “Living Pension.”
The Living Pension program, launched in March 2023 by the Living Wage Foundation, accredits employers who voluntarily contribute more to their workers’ pension pots to enable adequate savings for retirement.
With 16 million UK workers currently not paying enough into pensions to meet basic needs when they retire, and 20% of current pensioners already in relative poverty, the scheme seeks to address a “ticking timebomb” of increasing hardship in later life.
The latest employer to join is Sacker and Partners LLP, the UK’s leading specialist pensions law firm. They join financial services giants Aviva and Phoenix Group, law firm Herbert Smith Freehills, renewable energy provider SSE, investment manager Wealthify and other businesses and charities across sectors.
To achieve Living Pension accreditation, employers must commit to a target contribution level – either 12% of salary or £2,800 per year for each worker. At least 7%/£1,630 must come directly from the employer. Contributions apply to all staff regardless of age or earnings, including third-party contractors.
Katherine Chapman, Living Wage Foundation Director said: “We are delighted that 25 employers have signed up in under a year…Living Pension Employers are helping workers save enough to live on when they retire.”
“With current saving levels inadequate to meet basic needs in retirement, it’s vital that more employers follow the example set by our pioneering adopters and provide their staff with a Living Pension,” she added.
Debbie Holmes, HR Director at Sacker and Partners said accreditation “felt like a natural next step” after being a Living Wage employer since 2021. “We believe everyone should have enough money to live securely in retirement,” she said.
SSE’s Frazer Thomson encouraged all employers who can to join the scheme. “The Living Pension recognizes our pension provision will support decent retirement incomes for colleagues,” he said.