Today, the Living Wage Foundation launched a new voluntary standard for pension contributions. It follows research by the Resolution Foundation that four in five workers, rising to 95% among low paid workers, are not saving enough to receive a pension that will give an acceptable standard of living.
The standard uses a saving benchmark of £2950 per annum which equates to 12% of a full time living wage salary (based on 37.5 hours) in comparison with the total 8% required under auto enrolment.
Accredited employers must contribute a minimum of 7% to meet the standard. As an employer you can, of course, choose to contribute more than the 7%.
For more details see the Living Pension page on the Living Wage Foundation website.