The state pension, which provides a steady income to nearly 12.7 million older people in Britain, is administered by the Department for Work and Pensions (DWP). It is paid to those who have reached the UK government’s pension age (now 66 for both men and women) and have made at least 10 years of National Insurance contributions.
Currently, around 3.4 million people are claiming the New State Pension and receive payments of up to £221.20 per week, which is £884.80 per payment period, as the contributory benefit is normally paid every four weeks. The majority of claimants overall (9.3 million) receive Basic State Pension payments of up to £169.50 per week, which is £648 per payment period.
The type of State Pension a person receives depends on their date of birth: men born before 6 April 1951 and women born before 6 April 1953 are eligible for the basic State Pension, while those born after these dates will receive the new State Pension.
State pension payments after someone dies
The state pension process does not automatically end after a person dies, and certain steps need to be taken. You must notify the Pension Service that you need to stop payments by calling their helpline on 0800 731 0469 when a person dies.
Depending on your deceased spouse or civil partner’s National Insurance history and when they reached State Pension age, you may qualify for additional funding from your State Pension.
People under state pension age may also be entitled to bereavement benefits.
Inheritance and the basic state pension
Regarding inheritance and the State Basic Pension, if your spouse or civil partner was of State Pension age before 6 April 2016, you will need to contact the Pensions Service after their death to check what claims are possible.
You may be able to increase your Basic State Pension during the deceased’s qualifying years, that is, if you are not already receiving the full amount.
If your spouse or civil partner reached state pension age on or after 6 April 2016, or if you are not of state pension age when you die, using the Record of your partner’s National Insurance and state pension tool on the official GOV.UK website will help you determine possible inheritances.
For people who are single, divorced or whose civil partnership has been dissolved, it may still be possible to claim a portion of the basic state pension as an inheritance.
If a person dies after reaching State Pension age, and has not claimed it, the estate can claim up to three months of the basic State Pension.
State pension deferral
Once a person reaches state pension age, they have the option to defer payments if they choose to continue working. This will actually increase payments when they eventually decide to claim the pension by approximately £660 per year.
Supplementing the state pension
Under GOV.UK guidance, anyone who has increased their state pension can transfer some or all of that increase to their spouse or civil partner.
Inheritance and the new state pension
A person can inherit an additional payment on top of their new state pension if they become widowed. However, they cannot inherit anything if they remarry or form a new civil partnership before reaching state pension age.
Inheritance and additional state pension
If a marriage or civil partnership began before 6 April 2016 and one of the following circumstances applies, then a person may inherit part of their deceased partner’s Additional State Pension.
- The deceased spouse reached state pension age before 6 April 2016
- They died before 6 April 2016 but would have reached state pension age on or after that date.
Inherit a protected payment
A person will inherit half of their partner’s protected payment if their marriage or civil partnership with them began before 6 April 2016 and their state pension age is on or after 6 April 2016, or they died on or after 6 April 2016. This payment will be made from the state pension.
Inheriting an additional state pension or lump sum
A person may be eligible to inherit some or all of their partner’s additional state pension or lump sum if:
-
They died while they were deferring their state pension or had started claiming it after deferring it.
-
They reached state pension age before 6 April 2016
-
They were married or in a civil union when they died.
You can check your State Pension to work out how much money you will receive on the GOV.UK website here.
#State #Pension #basic #rules #inheritance #dies