Serps benefit halved

The Government plans to almost halve the benefits paid out under the State Earnings Related Pension Scheme over the next 50 years.

When the Pensions Bill currently going through Parliament becomes law, people retiring after the year 2010, or their employers, will have to increase sharply their contributions to personal and occupational pension schemes.

Chris Daykin, the Government Actuary who is responsible for state pensions said: "It is clear that people should not rely entirely on the state scheme entitlement if they want a satisfactory level of retirement income.''