The Living Wage Foundation has launched a new pensions standard to help workers build up adequate retirement income. The living pension is a voluntary savings target for employers who want to support workers in building up a pension to help meet basic everyday needs in retirement.
The savings target, which particularly aims to help lower earners, is 12 per cent of a worker's salary, of which the employer pays in at least seven per cent. Under current automatic enrolment rules, a minimum of eight per cent of eligible earnings must be paid into a workplace pension, with the employer paying in at least three per cent and employees' contributions and tax relief also making up the pot.
Employers who sign up to the voluntary pension standard can refer to themselves as accredited living pension employers and add the living pension logo to their website and other publicity materials, helping employees to identify which firms are offering this.
