State Pension inheritance rules and what happens to payments when a spouse dies

Almost 12.7 million older adults in the UK, aged over 66, currently receive a regular income from the Department for Work and Pensions (DWP) in the form of the State Pension.

The payment is available to those who have reached the eligible government pension age of 66 – which is now the same for both men and women – and who have been contributing to National Insurance for at least 10 years.

The type of state pension a person receives depends on their date of birth, with the basic state pension of £169.50 a week – or £648 per four-week pay period – currently claimed by 9, 3 million Britons.

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This basic rate applies to men born before April 6, 1951, and women born before April 6, 1953, according to the Manchester Evening News.

Meanwhile, those born after these dates will receive the New State Pension of up to £221.20 a week or £884.80 per four-week pay period. About 3.4 million claimants are now receiving these payments, the Daily Record reports.

But what happens to State Pension payments when someone dies? It’s a challenging topic and not one that anyone would want to consider – but understanding what will happen could help you or a family member. Here’s a quick rundown of what you need to know.

When a person dies, claiming their state pension doesn’t automatically stop – there are certain steps that need to be taken. It is vital that you contact the Pension Service to inform them to stop paying the pension, which can be done by simply calling their helpline on 0800 731 0469.

You may also be eligible to receive additional state pension payments depending on your deceased partner’s National Insurance contributions and when they reach state pension age. For people who have not yet reached this stage, death benefits may apply.

In relation to inheritance and basic state pension, if your spouse or civil partner reached state pension age before 6 April 2016, GOV.UK suggests you contact the Pensions Service after the person’s death to identify other possible rights.

You could increase your basic state pension by providing the deceased’s qualifying years if you are not already receiving the full amount.

If you or your deceased spouse or civil partner reached State Pension age on or after 6 April 2016, or if you were not yet State Pension age at the time of your death, the tool on the UK Government website which reads “Your partner’s national insurance card and state pension’ can clarify potential inheritance rights.

Meanwhile, for those who are single, divorced or have suffered the dissolution of their civil partnership, their estate may be able to claim some of the basic state pension.

If a person dies after reaching state pension age without claiming the state pension, their estate can claim up to three months of the basic state pension.

Postponing State Pension payments can increase payments when they are eventually claimed by around £600 a year for those who choose to continue working past State Pension age.

GOV.UK also states that anyone who has topped up their State Pension may have some or all of the extra amount inherited from their spouse or civil partner.

An additional payment in addition to the new state pension can also be inherited by a person if they are widowed. However, nothing can be inherited if they remarry or form a new civil partnership before reaching state pension age.

If a marriage or civil partnership began before 6 April 2016 and one of the following conditions applies, then a person can inherit part of their deceased partner’s supplementary state pension:

If a person’s marriage or civil partnership with their partner began before 6 April 2016 and State Pension age is on or after 6 April 2016, or died on or after 6 April 2016, they will inherit half from the protected value of the partner. the payment. This payment will be made with the state pension.

If your partner has died, you may be eligible to inherit some or all of your additional state pension or lump sum. This applies if they deferred their state pension or started claiming it after deferral, reached state pension age before 6 April 2016 and were married or in a civil partnership when they died.

You can estimate how much you may receive by checking your state pension on the GOV.UK website.