Bristol-based Great Western Credit Union, which gives access to affordable loans to individuals at risk of financial exclusion, has become the first organisation in the city to be recognised as a Living Pension Employer.
The accreditation, made by the Living Wage Foundation, reflects a commitment to ensuring that all employees at the organisation can meet the level of savings required for a secure life in retirement. 
Great Western Credit Union (GWCU), which is owned by its 18,000-plus members – individuals who save, borrow or bank with it – is the first UK credit union to gain the accreditation.
Launched last year, the Living Pension Standard 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 and takes into account different family types and circumstances.
GWCU CEO James Berry, pictured, said: “We are pleased beyond measure to be among 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.”
He said the accreditation reflected GWCU’s values and its 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,” he added.
GWCU believes that in the current economic climate, initiatives such as the Living Pension are sorely needed. 
Research completed by think tank the Resolution Foundation in 2022 found that of the 16m workers saving into defined contribution schemes, four out of five were not saving at levels likely to meet basic everyday living costs in retirement.
For low-income workers the figures were even bleaker, with only one in 20 saving enough.
While the introduction of the government’s auto-enrolment pension has seen more workers saving for retirement, 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 a week would be £1,427 a year short of what research shows workers need to be saving.
As a Living Pension employer, GWCU has committed to ensuring all its 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.
GWCU was founded in 1999 by a small group of volunteers in inner-city Bristol. It has grown significantly over the past 10 years, most recently extending its reach from the Bristol and Bath region into Dorset, Gloucestershire, Somerset and Wiltshire and changing its name from Bristol Credit Union to Great Western Credit Union to reflect this new geographical focus.
As the biggest credit union in the South West, it manages more than £10m of members’ savings and £9.2m in loans outstanding.
