Financial services group Legal and General has received living pension employer accreditation from the Living Wage Foundation as part of its aim to provide stability and security for its employees.
As a result of its commitment, all employees will receive a minimum employer pension contribution of 7%. Additionally, when employees contribute 5%, Legal and General will match this with an extra 5%, resulting in a total contribution of 17% for staff. Existing employees will be advised on how to increase their contribution in line with the standard if they wish to do so.
The Living Wage Foundation launched the living pension accreditation in March 2023 and there are now more than 50 accredited employers. It is a voluntary savings target for organisations that want to help workers, especially those on low pay, boost their pension pots to provide enough income to meet basic their everyday needs in retirement.
The living pension savings target is 12% of a full-time living wage worker’s salary, including a minimum 7% employer contribution. This is higher than the minimum required under auto-enrolment, which stipulates employers must contribute at least 3%, while staff pay 5%. The savings target can also be met as a cash amount of £2,950 a year, with the employer contributing at least £1,720 to this.
Katharine Photiou, managing director, workplace savings at Legal and General, said: “Securing accreditation as a living pension employer is a fantastic milestone for our business. We are investing in the long-term success of our people, ensuring that all our employees have the opportunity to achieve better outcomes in retirement. Pensions adequacy remains a critical issue across the UK, so we’re really pleased to be working with the Living Wage Foundation on this important initiative.”
