Insurers Phoenix Group and Aviva, and law firm Herbert Smith Freehills are among those that have signed up to become living pension employers, a scheme launched today (21 March) by the Living Wage Foundation.
The Good Things Foundation, Wealthify and Citizens UK also signed up, making up the first six employers to do so in the UK.
The standard was introduced following research among 3,000 people who saved into a pension in the past year. It revealed that 56% felt like they would never be able to retire, while 37% were not confident they were saving enough to meet basic needs in retirement.
The aim of introducing the living pension, which is a voluntary savings target, was to encourage employers to help workers build up a pension pot to meet basic everyday needs in retirement.
The target is 12% of a worker’s annual salary, of which the employer pays in at least 7%, and can also be implemented as a cash amount of £2,550 a year based on 12% of a real living wage worker’s salary. The employer will contribute at least £1,448 to this.
Andy Curran, chief executive of Standard Life, part of Phoenix Group, said: “It’s critical that people are saving enough towards their retirement, and we know that employers have an important role to play in ensuring that the right foundations are laid for their employees’ retirement.
“As the UK’s largest long-term savings and retirement business, Phoenix Group is proud to be one of the first employers in the UK to sign up to the living pension accreditation which is a really good initiative.”
Alison Brown, executive partner at Herbert Smith Freehills, added: “Being a responsible employer is about more than ensuring staff are looked after while they work for you; it is about recognising that providing employees with stability and security in retirement is just as important.
“We are delighted to have supported the Living Wage Foundation in developing the new living pension standards and are proud to be one of the first employers in the UK to be accredited as providing our staff with access to a living pension.”