Phoenix Group has become one of the first organisations in the UK to join forces with the Living Wage Foundation and sign up as a Living Pension Employer to help address the problem of inadequate pension saving. This reflects our  Group’s commitment to being a leading employer and its focus on helping to close the retirement savings gap.

The Living Pension is a voluntary savings target for employers who want to help workers build up a pension pot that will provide enough income to meet basic everyday needs in retirement. It was launched at Standard Life House in Edinburgh today (Tuesday 21st March)

Employers signing up to the Living Pension Standard agree to contribute at least £1,448, or 7% of a Living Wage workers salary each year. 

Phoenix Group fully supports the objectives of the Living Pension Standard. The company contributes 10% to its employees’ pensions with an additional 2% matching element through its main pension scheme, and a default employee contribution for new joiners of 2%.

Andy Curran, Chief Executive of Standard Life, part of Phoenix Group, said: “It’s critical that people are saving enough towards their retirement, and we know that employers have an important role to play in ensuring that the right foundations are laid for their employees’ retirement.

“As the UK’s largest long-term savings and retirement business, Phoenix Group is proud to be one of the first employers in the UK to sign up to the Living Pension accreditation which is a really good initiative. We urge other businesses, who can, to also sign up to help ensure everyone can have enough income to meet their everyday needs in later life.”

Katherine Chapman, Director of the Living Wage Foundation, said: “Low pension saving levels are a long-standing issue and our research shows that workers can tell they face an uncertain future. The current cost-of-living crisis is exacerbating the problem. Struggling to make ends meet as living costs soar, many workers are unable to prioritise pension saving, which risks storing up a future crisis of millions unable to afford even the basics in retirement.

Over the last ten years the Living Wage campaign has grown in strength and numbers. Now paid by over 12,000 employers, it has delivered essential pay rises to over 390,000 workers. The Living Pension builds on this by encouraging employers to do more to help their workers build a pension pot that meets basic everyday needs in retirement, providing stability and security for workers in the future.”

Polling of over 3,000 people who had saved into a pension in the last year, by the Living Wage Foundation and Comres, found that over half (56%) of people who paid into a pension in the last year feel like they’ll never be able to retire. Two in three (64%) feel they will need to work several years beyond retirement, and two in five (38%) are not confident that they are saving enough to meet even basic needs in retirement.

One reason some pension savers have such low confidence in their retirement plans is because they are being forced to cut their contributions as the cost-of-living crisis bites. 9% stopped or reduced their contributions in the last 6 months, and 8% plan to cut their contributions in the months ahead. Of those who cut their contributions, 42% blamed rising living costs, with 85% saying they had seen costs rise most in groceries and utility bills.

The Living Wage Foundation is at the heart of the independent movement of businesses, organisations and people who believe workers should be paid a real Living Wage that meets basic everyday needs. The Living Pension builds on the work of the real Living Wage by providing stability and security for workers in retirement.

Enquiries 

Andrew Golder
Senior Public Relations Manager
andrew.golder@thephoenixgroup.com
07977 678 988