New ‘living pension’ needed to help retirement

A new ‘living pension’ is needed to help workers enjoy a decent standard of living in retirement, according to a think-tank. 

It would help firms ensure that their staff are saving adequately for their later years, the Resolution Foundation said. 

Making ends meet: The report said further action is needed to encourage greater saving

The Building A Living Pension report, backed by Aviva, said the living wage campaign has been successful in encouraging firms to pay wages that deliver adequate living standards. 

But workers who only pay in the minimum required under automatic enrolment into their workplace pensions may fall short of saving enough for a comfortable retirement. 

The report said further action is needed to encourage greater saving.