State Pension payments have long been a subject of debate, especially concerning their inheritance rules. Currently, only a spouse or civil partner can inherit a deceased person’s State Pension entitlement. However, a recent petition, reported by DevonLive, is calling for changes to the existing regulations.
The petition, titled “Allow State Pension to be passed to children, long-term partners, and dependents,” argues that the current system excludes people who might be equally dependent on the deceased, such as adult children or long-term cohabiting partners. Led by Adrienne Allen-Laing, the petition seeks to broaden the scope of beneficiaries for State Pension inheritance.
The Current Rules and the Call for Change
Currently, if someone passes away, their State Pension entitlement is generally passed on to their spouse or civil partner. Unmarried partners, adult children, or other dependents are excluded from this inheritance, even if they are financially reliant on the deceased.
The petition, available on the UK Government’s Petitions Parliament website, highlights how this leaves many vulnerable dependents, such as adult children with disabilities or long-term carers, without the financial support they need after a bereavement.
The petition emphasizes the need for a system that recognizes real-world relationships and dependencies, which are not always reflected in the current rules. As the petition states,
We ask the Government to change State Pension inheritance rules so that people can nominate a beneficiary such as their child, long-term cohabiting partner, or carer – or offer them a lump sum – so it is not just a spouse or civil partner inheriting from the pension as at present.
Should the petition reach 10,000 signatures, it will trigger a formal response from the government, potentially leading to changes in the rules around inheritance.
What Happens to State Pension Payments When Someone Dies?
State Pension payments don’t automatically end when someone passes away. It is crucial to inform the Pension Service to stop further payments. This can be done by calling the helpline at 0800 731 0469. Additionally, if the deceased’s spouse or civil partner has not yet reached State Pension age, they might be eligible for Bereavement benefits, depending on the deceased’s National Insurance contributions and the date they reached State Pension age.
The rules for inheritance of the Basic State Pension can also vary. For those whose spouse or civil partner reached State Pension age before April 6, 2016, they may be able to boost their Basic State Pension using the deceased’s qualifying years. If the surviving partner is younger and has not yet reached their own State Pension age, they can use the UK government’s State Pension tool to check their eligibility for inheritance.
The Financial Impact and the Need for Reform
The financial implications of State Pension inheritance are substantial. The full New State Pension for 2025/26 provides:
- Weekly payment: £230.25
- Four-weekly payment: £921
- Annual amount: £11,973
While the full Basic State Pension offers:
- Weekly payment: £176.45
- Four-weekly payment: £705.80
- Annual amount: £9,175
These payments can significantly impact the financial security of surviving spouses or partners. However, in cases where there is no spouse or civil partner to inherit the pension, dependents may be left without financial protection.
The current rules are limiting and fail to account for the diverse nature of family relationships today. By allowing people to nominate a beneficiary or offer a lump sum, the government could help protect vulnerable dependents from financial hardship after the loss of a loved one.
Inheritance Rights Based on Marital Status and Contributions
The inheritance of State Pension also depends on when the deceased reached State Pension age and the type of pension they were receiving. For example, if a spouse or civil partner was married or in a civil partnership before April 6, 2016, they might be entitled to inherit the Additional State Pension or a lump sum.
These inheritance rights can also depend on whether the deceased person had deferred their pension or started receiving it after deferring.
For those still working after reaching State Pension age, they can choose to defer their pension payments. This decision results in a higher future pension by £660 per year for each year of deferral.
