Employee Benefits poll: More than half (53%) of organisations do not think the living pension goes far enough to support employees in building a pension pot that meets basic retirement needs, according to a survey of Employee Benefits readers.
One-third (33%) said they did think the living pension goes far enough to support employees in terms of saving a pension that meets basic retirement needs, whereas 15% were unsure.
Earlier this month, Scottish energy firm SSE was accredited as a living pension employer to provide financial stability and security to its workforce. The living pension is a voluntary savings target for employers that want to support workers to build a pension pot that will meet basic everyday needs in retirement.
The living pension savings target is 12% of a full-time employee’s living wage salary, of which the employer pays in at least 7%. This is higher than the minimum contributions required under auto-enrolment, where an employer is required to contribute 3%. The living pension savings target can also be implemented as a cash amount of £2,550 a year, with the employer contributing at least £1,488 to this.
Frazer Thomson, head of pensions at 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 and later in life.”