S2P boosts retirement income for low earners

S2P legislation introduced in April will, for the first time, provide additional state pension for carers and long-term disabled people with broken work records

Recognising that the state earnings related pension scheme (Serps) is not meeting the needs of those on the lowest incomes who, as carers or disabled, are unable to work, the Government instituted the state second pension (S2P) on 6 April 2002. S2P will boost pensions for low earners (excluding the self-employed) and, for the first time, provide additional State pension for carers and many long-term disabled people with broken work records. Since 1988, under Serps, the accrual of pension for people attaining pensionable age after April 2009 has been based on 20% of earnings between t...