- 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.
The Living Wage Foundation’s scheme to tackle the ticking time bomb of pensioner poverty is gathering pace, with over 25 employers now signed up to help their workers save enough for a decent standard of living in retirement with a Living Pension accreditation. The scheme was launched less than a year ago in March 2023.
Living Pension Employers are addressing extremely low pension-saving amongst workers which sees 16 million, or 4 in 5, not paying enough into their pension every year to meet even basic needs when they retire . 1 in 5 pensioners in the UK are currently in relative poverty, a figure which has risen over the last decade and is expected to keep getting worse .
The Living Pension sees employers commit to a voluntary savings level using either a cash (£2,800) or percentage (12%) target. The employer needs to contribute a minimum of 7%, or £1,630, depending on whether they use the cash or percentage target. The Living Pension applies to all directly employed staff, regardless of age and earnings, and third party contracted staff.
Sacker and Partners LLP, the UK’s leading specialist law firm to the pensions and retirement savings industry, is the latest employer to sign up to the Living Pension, joining other early adopters such as Aviva, Wealthify, Phoenix Group, Herbert Smith Freehills and SSE as well as small and medium sized businesses and charities across the country.
Katherine Chapman, Director of the Living Wage Foundation, said: “We are delighted to have reached the milestone of 25 accredited Living Pension Employers less than a year after the scheme was launched. Living Pension Employers commit to contributing more to workers’ pension pots to help them save enough to live on in retirement.
We know that current saving levels are inadequate for people to meet basic needs in retirement and for those on low pay tough choices today about heating and eating are made worse by worrying about an uncertain future, unable to plan and save for the years ahead. That's why it’s so important that we have a growing movement of employers willing to go further to support their workers by boosting their pension savings. We encourage other employers to follow the example set by our pioneering early adopters and sign up to provide their workers with a Living Pension alongside a real Living Wage.”
Debbie Holmes, Director of HR at Sacker and Partners LLP, said: “Ensuring effective provision for retirement is at the core of what we do as a specialist pensions law firm, and we believe that everyone should have enough money when they retire to live a secure life. Becoming a Living Pension employer felt like a natural next step for us after being accredited as a Living Wage employer in 2021, and we hope lots of other employers are inspired to sign up to this really important initiative to help their workforce save for their future.”
Frazer Thomson, Head of Pensions, SSE, said: “The Living Pension accreditation recognises that our current pension provision for colleagues will support them in saving for a decent level of income in retirement, and we’re working to make it as easy as possible for colleagues to save.
“We would encourage every employer that can, to join the scheme, as well as the Living Wage and Living Hours, to ensure their workforce has a decent level of income both in employment as well as later in life.”
Matt Ford: email@example.com / 07507478967
Notes to editors
 Cominetti, N. and Adamtten, F. (2022) Living pensions: An assessment of whether workers’ pension saving meets a ‘living pension’ benchmark. Resolution Foundation. https://www.resolutionfoundation.org/publications/living-pensions/
 Households below average income: for financial years ending 1995 to 2022, DWP, 2023.