Firms should hike their pension contribution rate to help low earners save enough to have a decent standard of life when they retire, a leading think-tank has suggested.
The Resolution Foundation has called for a 'living pension' as it found that even a lifetime of minimum pension contributions under the auto-enrolment scheme will not be enough for an adequate retirement.
Moulded on the Living Wage campaign - which encourages companies to pay their staff wages which are 'based on living costs' - a 'living pension' would see firms help employees saving enough for retirement.
This would include firms setting clear minimum targets needed for a comfortable retirement as well as hiking their contributions.