The Confederation of British Industry (CBI) has put its weight behind a ‘reformed second state pension' (S2P) as a major step in solving the UK pension crisis.
The employers' organisation believes lower-earning employees in some smaller firms are most at risk in failing to build an adequate retirement so it therefore calls for the provision of lower-cost saving options for individuals within this working category. The CBI is campaigning for the state second pension to be used as a method of savings top-up linked to earnings, to aid the basic state pension. CBI believes by managing individuals' pensions collectively through the S2P, such a system would increase the final pension pot for an individual earning £20,000, by an additional £2,000 per...
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