The Living Pension accreditation provides an annual savings target for Living Wage Employers to provide workers with financial security now and in the future.
The accreditation builds on the success of the Living Wage and sets an annual pensions savings target that employers can have confidence in, making it easier to do the right thing by their employees.
What is a Living Pension?
The Living Pension accreditation is open to all accredited Living Wage Employers. To become a Living Pension Employer, organisations must provide a Living Pension savings level, using either a cash or percentage target.
Annual saving benchmark of £3,150
This equates to 12% full-time Living Wage Salary.
* based on a Living Wage salary for a 37.5 hour week
The Living Pension must apply to all directly employed staff (regardless of age and earnings) and, over time, third party contracted staff within scope of the Living Wage. As well as making the minimum savings level available for existing employees, all new employees should automatically be enrolled on the Living Pension at least.
As part of the accreditation, employers must also agree to provide an annual communication on the Living Pension to all employees, and a template will be provided to support this.
The Living Pension savings target is applicable to Defined Contribution (DC) pension schemes. We also accredit employers providing Defined Benefit (DB) pension schemes. Further information on this is covered in our Guidance & FAQs below.
Why become a Living Pension Employer?
Becoming a Living Pension Employer is a practical way to tackle pension poverty and put your employee’s financial futures first.
As a Living Pension Employer, you are joining a growing movement of leading employers transforming their employees’ lives now and in retirement.
You can work with us - no matter where you are on your journey to provide the stability and security your employees need for their futures.
The Living Pension accreditation demonstrates to customers, clients, investors and peers that you are one of the UK’s leading organisations on decent work. The Living Pension accreditation also demonstrates to your employees and customers that you care about your staff and are a forward-thinking employer.
By providing a Living Pension, you can have peace of mind that you’re supporting your workers to save enough for their retirement.
Key Impacts of Living Pension Accreditations:
- Employee Confidence Boost: Many employees feel more informed and assured about their pension contributions since their employer gained Living Pension accreditation.
- Positive Contribution Changes: 71% of accredited employers adjusted pension contributions—either theirs or their employees’—to meet the standard, helping raise overall pension levels.
- Smooth Implementation: Of those who made changes, 63% said the process was easy—thanks to the tailored one-to-one support provided during accreditation.
Learn more about the results of our impact survey here.
Living Pension was developed as a stretching standard within the parameters of the UK pension system. The Living Wage Foundation does not endorse any pension schemes or providers and all investment decisions are made by organisations and individuals, who should seek financial advice if needed.
Dear Green on why the Living Pension accreditation made sense for their business
Coffee company Dear Green in Glasgow decided to become a Living Pension Employer in additional to being a Living Wage and Hours Employer. In this video, they share why doing so was a great decision to support their staff both now and in their futures.
By extending the Living Pension to outsourced workers, businesses can ensure that everyone who contributes to their success can live with dignity and respect both now and in the future. Read more about how you can extend the Living Pension to your outsourced workers.
Going Beyond the Living Wage: Living Hours & Living Pension Information Sessions
The Living Wage, Living Hours and Living Pension accreditations are a practical way to help tackle in-work and post-work poverty and support your employees to thrive. They are the marks of a responsible employer, demonstrating an ongoing commitment to do the right thing by your employees.
Come along to find out more about the Living Hours and Living Pension schemes, and get your questions answered. You will hear from the team on how the schemes were developed, the criteria for accreditation and how the process works. There will then be plenty of time for questions in an informal setting, allowing our team to address any queries you may have.
120 Living Pension Employers
Penfold
Penfold is a digital workplace pension provider on a mission to help everyone save enough for a comfortable later life.Commsave Credit Union
A financial services cooperative for people working in communications/logistics, civil service, fishing industry and those who live or work in Northamptonshire.Culture & Business Scotland
We connect cultural and business organisations across Scotland to create shared value by championing leadership, philanthropy and sponsorship.Derbyshire Wildlife Trust
Our vision is a Wilder Derbyshire, where communities and wildlife thrive, together.Kirkwood Consulting
Provider of training and recruitment solutions to the Employment, Skills, Education, Housing and Engineering sector.Wealthify Ltd
Wealthify is a fintech business based in South Wales, our purpose is to inspire anyone to build their future wealth.Home-Start Manchester
We provide weekly home visiting support to families with at least 1 child under 5 via a team of local parent volunteers.Falmouth Harbour
As a Trust Port our purpose is to safely manage the harbour to facilitate sustainable prosperity for the Port to benefit all Harbour users.Odd Arts CIO
charity delivering innovative and creative programmes across all art forms, with vulnerable and excluded groups.Palladium International Limited
Palladium works with governments, businesses, and investors to solve the world’s most pressing challenges.
The Poverty Alliance
The Poverty Alliance seeks to influence policies at all level that have an impact on poverty and can create the conditions for a more socially just Scotland.Community Justice Scotland
We believe that smart justice based on the best evidence of what works to prevent offending, repair lives and improve our communitiesVetDentist
Specialist Vet Dentist. Treating pets with facial trauma or tumours. Root canal treatment, difficult extractions, prevention of periodontal disease.
Learning and Work Institute
An independent policy and research organisation dedicated to lifelong learning, full employment and inclusion.Charlotte Findlater Design
Charlotte Findlater Design provides turnkey solutions for bespoke architecture, luxury interior design and sustainable build.The Sainsbury Family Charitable Trusts
SFCT is the operating office of over 17 different independent grant-making trusts and charities established by members of the Sainsbury family.Great Western Credit Union
Here to help local people make the most of their money, by giving them access to affordable loans and competitive savings accounts.Insanity Talent Management Limited
We strategically partner with entertainment talent as career managers, exclusively representing a diverse roster across all areas of entertainment.Newcastle Building Society
Newcastle Building Society is the largest building society in the North East with strong ties to the region and local communities.
Primary Eyecare Services
Primary Eyecare is the largest single primary eye care provider in England.
Unlimited Potential
Unlimited Potential is a social enterprise that specialises in social and economic innovation, creating solutions with local people and communities.Read our guidance and FAQs
Read for more guidance and FAQs on the criteria for the Living Pension accreditation.
Our methodology
Read for more information on our methodology for calculating the Living Pension standard.
