Living Wage Foundation unveils Living Pension standard

Standard aims to provide low income workers with sufficient income levels in retirement

Martin Richmond
clock • 5 min read

The Living Wage Foundation has launched the Living Pension, an employer standard to tackle low levels of pension savings particularly among low-income workers.

The standard aims to provide employers with the means to help their employees to build up a pension pot which would provide them with a sufficient level of income in retirement to meet their basic needs. The Living Pension standard sets a savings target of 12% of a worker's annual salary, of which the employer would contribute at least 7% - expanding on the minimum 3% employer contribution levels required under auto-enrolment. The savings target can also be implemented as a cash sum of £2,550 a year, based on 12% of the salary of a living wage worker, to which the employer would contr...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Mind the gap: Why advisers have a key role in closing the gender pension divide

Mind the gap: Why advisers have a key role in closing the gender pension divide

'While access to pensions has improved, barriers remain'

Julia Peake
clock 22 October 2026 • 5 min read
Planning points: Paying pension funds to charity on death

Planning points: Paying pension funds to charity on death

IHT on pensions may create opportunities for charitable giving

Martin Jones
clock 16 October 2026 • 3 min read
Torsten Bell: Pensions industry must 'give ground' to what savers trust

Torsten Bell: Pensions industry must 'give ground' to what savers trust

Torsten Bell says what the industry is doing is a ‘triumph’, but there must be transparency

Holly Roach
clock 15 October 2026 • 1 min read