Now that SERPS has ended what has replaced it?

SERPS has now been replaced by the State Second Pension (usually shortened to S2P). This is designed to give more help to the low paid than SERPS did.

S2P was originally designed to be introduced in two stages:

• In the first stage, now running, if you earn more than about £25,000 then S2P works in exactly the same way as SERPS. If you earn less than this but above the lower earnings limit (currently £84 a week (2006/7 figure)), you will do better than in SERPS - considerably better if you are very low paid but earn more than £84 a week.
• The second stage depends on what the government decides to do after consultation on the Pensions White Paper published in May 2006.