The Living Pension standard builds on the work of the real Living Wage by providing stability and security for workers now and in the future.
It is a voluntary savings target for employers, to help workers build up a pension pot that will provide enough income to meet basic everyday needs in retirement. It is independently calculated based on the real cost of living.
The standard sets out the minimum annual contribution required through an average working life to reach this savings level and employers commit to making sure all workers can access this.
What is a Living Pension?
The Living Pension accreditation is open to all accredited Living Wage Employers. To become a Living Pension Employer, organisations must provide a Living Pension savings level, using either a cash or percentage target.
Annual saving benchmark of £2800
This equates to 12% full-time Living Wage Salary
* based on a Living Wage salary for a 37.5 hour week
The Living Pension must apply to all directly employed staff (regardless of age and earnings) and, over time, third party contracted staff within scope of the Living Wage. As well as making the minimum savings level available for existing employees, all new employees should automatically be enrolled on the Living Pension at least.
As part of the accreditation, employers must also agree to provide an annual communication on the Living Pension to all employees, and a template will be provided to support this.
Read for more information on our methodology for calculating the Living Pension standard.
Read our guidance and FAQs
Read for more guidance and FAQs on the criteria for the Living Pension accreditation.