Great Western Credit Union has been accredited by the Living Wage Foundation as a Living Pension Employer.
GWCU is the first Credit Union in the country, as well as the first Bristol-based organisation, to achieve this milestone.
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. Their Living Pension standard, which was launched in March 2023, is a voluntary savings target designed to help employees build up a pension pot that will provide enough income to meet their basic everyday needs in retirement. It sets out the minimum annual contribution required through an average working life to reach this savings level - and confirms that an employer has committed to making sure all their workers can access this level of savings. As with the real Living Wage, it is independently calculated based on the real cost of living, drawing on the Minimum Income Standard and taking into account different family types and circumstances.
James Berry, CEO of GWCU, said:
“We are pleased beyond measure to be amongst the over 30 accredited Living Pension Employers in the UK. Like the Living Wage Foundation, we at GWCU believe it is crucial for employers to want to help all workers to be able to meet their everyday needs - even in retirement. This accreditation reflects our values and our mission to ensure that everyone has access to fair and affordable finance services and information. It is our hope that we, as the first Bristol organisation and the first Credit Union in the country to receive this accolade, can inspire more employers to take better care of their employees.”
In the current economic climate, initiatives like the Living Pension are sorely needed. Research completed by the Resolution Foundation in 2022 found that of the 16 million workers saving into defined contribution schemes, an astounding 4 out of 5 were not saving at levels likely to meet basic everyday living costs in retirement. For low-income workers the figures are even bleaker, with only 1 in 20 saving enough. The introduction of the government’s auto-enrolment pension has seen more workers saving for retirement, but the Resolution Foundation’s research also shows that the government’s minimum levels are not enough to meet basic everyday needs of people after they leave the workforce. Under automatic enrolment, a Living Wage employee working 37.5 hours per week would be £1,427 a year short of what research shows workers need to be saving.
As a Living Pension employer, the GWCU has committed to ensuring all their employees meet the level of savings required for a secure life in retirement. The Living Pension savings target is 12% of a full time Living Wage worker’s salary, made up of a minimum employer contribution of 7%. This builds on auto-enrolment, and the minimum contribution level set by the government. Through auto-enrolment, employers must contribute at least 3%, while workers pay the remaining 5%. The Living Pension savings target can also be met as a cash amount of £2,800 a year, to which the employer contributes at least £1,630.
To learn more about how GWCU helps people with their savings, visit their website or reach out directly to their customer service team.
