Herbert Smith Freehills named UK’s first Living Pension law firm
updated on 19 April 2023
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Herbert Smith Freehills LLP has become the first law firm to be recognised as a Living Pension employer, meaning it’s committed to helping its employees build pensions designed to provide sufficient income in retirement.
According to research by the Resolution Foundation, four in five workers (16 million) in defined contribution schemes aren’t saving at a level likely to achieve a satisfactory standard of living in retirement.
The firm will be onboarding new employees at a higher employer and member contribution rate to help them to achieve an optimum savings level required to meet every day needs when retired. Meanwhile, current employees will be encouraged to ‘opt-up’ to benefit from higher employer contributions.
Herbert Smith Freehills will also coordinate with suppliers to make certain that all employees connected to the firm can benefit as part of its commitment to the scheme.
Commenting on the change, Alison Brown, executive partner at Herbert Smith Freehills, said: “The cost-of-living crisis has highlighted the stark difficulties faced by far too many individuals who struggle to manage financially on a daily basis. The problem is magnified with many potentially unable to save for their future. Being a responsible employer is about more than ensuring staff are looked after whilst they work for you; it is about recognising that providing employees with stability and security in retirement is just as important".
The Living Pension savings target is independently developed by the Living Wage Foundation and is calculated using an average basket of household goods and services. Notably, it considers the minimum income standard, also considering the variety of family types, circumstances and areas of residency.
"We are proud to have been able to support the Living Wage Foundation in launching this important initiative, which will hopefully benefit hundreds of thousands of workers around the UK, including our own," Brown concludes.
