Living Pension movement hits 100 signatories as NatWest joins

The Living Pension accreditation is given to employers that make pension contributions “designed to keep workers out of poverty in later life”. This is done either by contributing at least 7% of salary, as part of an overall contribution target of 12%, or by ensuring total contributions amount to 12% of the living wage (currently £13.45 an hour outside of London).

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 colleagues in saving for a decent level of income in retirement and that we’re making it as easy as possible for them to save.”

The Living Wage Foundation, which launched the pension initiative in 2023, said more than 100,000 workers were employed by accredited companies. These include Aviva, pension company Penfold, and Everton FC. The foundation now lists 104 accredited employers on its website.

Katherine Chapman, director of the Living Wage Foundation, said: “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.”

The foundation estimates that someone earning the living wage and working 37.5 hours a week would be short by £1,550 a year of the amount needed to meet minimum retirement standards.

Chris Eastwood, chief executive and co-founder of Penfold, said employers had “an opportunity, and a responsibility, to go beyond the legal minimum” pension contributions. The pension provider pays 10% of salary into each employee’s pension pot, with no requirement for staff to contribute.

The Living Wage Foundation is chaired by Professor Nick Pearce, one of three people tasked with overseeing the Pensions Commission, alongside Sir Ian Cheshire and Baroness Jeannie Drake.