The State Pension currently provides a regular income for almost 12.7 million seniors across Great Britain, including more than 1.1M residing in Scotland.
The payment is managed by the Department for Work and Pensions (DWP) to those who have attained the UK state pension age of 66 for both men and women — and have completed a minimum of 10 years' worth of National Insurance contributions.
Around 3.4m individuals claiming the New State Pension currently receive payments of up to £221.20 each week, and as the contribution-based benefit is typically provided every four weeks, this totals £884.80 per pay cycle. Most overall claimants (9.3m) are getting Basic State Pension payments of up to £169.50 per week, which equals £648 per pay period.
The State Pension type a person gets depends on their birthdate — men born prior to April 6, 1951 and women born before April 6, 1953 qualify for the Basic State Pension while those born after these dates will receive the New State Pension.
But the question that arises is what happens to State Pension payments after someone passes away? Although it is a difficult topic to address, knowing what will follow could help you or your family members. A quick overview of what you need to know is provided below.
State Pension Payments After Someone Passes Away
A State Pension claim won't just end when someone passes away, there are in fact steps you need to follow. Following someone's passing, you have to inform the Pension Service so that payments are halted — you can do this by making a phone call to the Pension Service helpline on 0800 731 0469.
You may qualify for additional payments from your deceased spouse's or civil partner's State Pension, but, this depends on their National Insurance Contributions, and the date they reached the retirement age.
If you haven't reached State Pension age yet, you might also qualify for Bereavement benefits.
Inheritance: Basic State Pension
If a spouse or civil partner have attained State Pension age before April 6, 2016, then GOV.UK guides people to contact the Pension Service once someone passes in order to check what they are eligible for.
They may be able to increase their Basic State Pension using the deceased’s qualifying years if they do not already receive the full amount.
If they have attained the State Pension age on or after April 6, 2016, or be below the state pension age when their spouse or civil partner passes, the “Your partner’s National Insurance record and your State Pension” tool available on the UK Government website can help a person check what inheritance they may qualify for.
For those who are single or divorced, or whose civil partnership has ended, their estate may be able to claim some of a Basic State Pension.
This is if that person passes away after attaining the State Pension age, and solely if the State Pension had not been claimed. In this case, the estate have the right to claim up to three months of the Basic State Pension.
Additional Money from Deferring State Pension
Once someone reaches State Pension age, they have the possibility of deferring payments if they opt for continuing to work. Doing this will increase payments when they decide to claim by nearly £600 each year.
State Pension Top-up
Guidance on GOV.UK asserts that anyone who has topped up their State Pension, the spouse or civil partner, could potentially inherit some or the entire top up.
Inheritance: New State Pension
It is possible that a person will inherit an extra payment on top of their new State Pension if they are widowed.
However, people cannot inherit anything if they remarry or form a new civil partnership before reaching State Pension age.
Inheriting Additional State Pension
If a marriage or civil partnership began prior to April 6, 2016 and one of the circumstances below applies, then a person may be able to inherit part of their deceased partner’s Additional State Pension. These are:
- The deceased partner attained State Pension age before April 6, 2016
- They passed away before April 6, 2016 but would have reached State Pension age on or after that date
Protected Payment Inheritance
A person will receive half of their partner’s protected payment if their marriage or civil partnership with them started before April 6, 2016, and:
- Their State Pension age is on or after April 6, 2016.
- They passed on or after April 6, 2016.
- This payment will be issued with the State Pension.
