On the go: A third of savers (33 per cent) would prefer their pension provider to divest from companies that do not pay the living wage, rather than engage with them to drive better behaviour, according to research from PensionBee.
The pensions consolidator analysis, which polled 1,676 of its clients, also showed that 83 per cent of savers expect companies in their pension to pay all of their workers the living wage.
In addition, savers showed the most concern around businesses’ harmful social practices, compared with environmental and governance issues.
Only 43 companies in the FTSE 100 currently pay the living wage to all of their staff, including those employed through contractors on their UK sites. The living wage is based on the real cost of living, which at present is £9.50 an hour across the UK and £10.85 in London.
ShareAction and its good work coalition are among those who have called for all companies to pay the living wage, including to their contractors and supply chains.
Clare Reilly, chief engagement officer of PensionBee, said: “These survey results demonstrate that the imperative for a living wage is increasing.
“Paying employees enough to meet their everyday needs should not be optional for any company in the UK, particularly those that are listed on the London Stock Exchange.”
The consolidator itself will soon be listed, after announcing plans to list on the London Stock Exchange in March.
PensionBee became an accredited living wage employer in February 2020, and pays all its employees the London living wage, regardless of where they are based in the UK.
Reilly added: “Pension savers recognise both the huge negative impact to society that poverty pay brings, and also the risk to the long-term sustainability and profitability of these companies.
“These survey results should be a wake-up call for companies that refuse to pay wages that reflect real living costs.”
Martin Buttle, head of good work at ShareAction, noted that the research showed “that savers expect pension funds and their asset managers to set high stewardship standards on good work/quality of work.
“Paying a living wage is a clear indicator of a company’s approach and intentions in this regard. This research shows that savers clearly recognise this as a baseline requirement.”
