Natwest Group has received living pension employer accreditation from the Living Wage Foundation.
Launched in 2023, the living pension employer accreditation is a voluntary annual savings target for employers that want to tackle low pension saving within their workforces. It also enables them to help their workers build a pension pot that provides enough income to achieve a basic standard of living in retirement.
It builds on auto-enrolment and the minimum contribution level set by the government. Through auto-enrolment, employers must contribute at least 3% and staff the remaining 5%, including 1% in tax relief. The living pension savings target is 12% of a full-time living wage worker’s salary, including a minimum 7% employer contribution.
It can also be met through a cash benchmark of £3,150 a year, with employers contributing a minimum of £1,840 to this.
By committing to provide a living pension, accredited employers pledge to go beyond the legal minimum to boost pension savings for their staff and enable them to have a solid retirement income in later life.
Mark Chadwick, head of pensions at Natwest Group, said: “We’re pleased to have received living pension accreditation, which recognises that our pension funding supports employees in saving for a decent level of income in retirement and that we’re making it as easy as possible for them to save.”
Katherine Chapman, director of the Living Wage Foundation, added: “We’re delighted to welcome Natwest to the now 100-strong movement of responsible employers securing their workers’ financial futures with a living pension. The commitment of these leading employers means their workers can look forward to a dignified life in retirement. We’ve seen incredible growth in living pension accreditations in such a short time because employers know it’s good for people and good for business.”
