The death of a spouse or civil partner can raise important questions about household income, particularly when State Pension payments are involved. In some circumstances, a surviving partner may be able to inherit part of the deceased person’s State Pension or receive additional payments based on their National Insurance record.
The rules depend on several factors, including whether the deceased received the Basic or New State Pension, when they reached State Pension age, when the marriage or civil partnership began, and whether any additional or protected payments were involved.
State Pension payments do not simply transfer in full to a surviving spouse. Instead, the Department for Work and Pensions (DWP) applies specific rules to determine whether anything can be inherited.
Payments
When someone receiving State Pension dies, the Pension Service should be informed so that payments can be stopped. The Pension Service can be contacted on 0800 731 0469.
A surviving spouse or civil partner may be entitled to additional State Pension income based on the deceased person’s National Insurance contributions and circumstances.
The rules differ depending on the type of State Pension involved. Some people may also qualify for bereavement benefits if they have not yet reached State Pension age.
It is therefore important to contact the Pension Service rather than assuming payments will automatically continue or stop in a particular way.
Basic
Basic State Pension inheritance rules largely depend on when the surviving partner and deceased person reached State Pension age.
If a spouse or civil partner reached State Pension age before April 6, 2016, they may be able to increase their Basic State Pension using some of their deceased partner’s qualifying National Insurance years if they are not already receiving the full amount.
The Pension Service can check the individual’s circumstances and explain whether an increase is available.
If the surviving partner reached State Pension age on or after April 6, 2016, or was below State Pension age when their partner died, different rules apply.
The GOV.UK tool covering a partner’s National Insurance record and State Pension can help determine whether any inheritance may be available.
Unclaimed
There can also be circumstances in which an estate receives a payment after someone dies.
For a person who was single, divorced, or had a dissolved civil partnership, the estate may be able to claim up to three months of Basic State Pension if the person died after reaching State Pension age but had not claimed their State Pension.
This does not mean every estate will receive a payment. Eligibility depends on the circumstances and whether the relevant conditions are satisfied.
Families dealing with an estate should therefore check directly with the Pension Service if they believe an unclaimed State Pension may be due.
Deferral
State Pension deferral can affect what a surviving spouse or civil partner may eventually inherit.
Someone who reaches State Pension age can choose to defer claiming their State Pension. Deferring can increase the amount they receive when they eventually claim, subject to the rules applying to their pension.
The available increase depends on when the person reached State Pension age and which State Pension rules apply. The inherited amount can also depend on whether the deceased person was deferring their pension or had started claiming after a period of deferral.
This makes deferral-related inheritance more complicated than simply transferring a weekly State Pension payment.
Topups
A State Pension top-up can also have inheritance implications.
According to GOV.UK guidance, a surviving spouse or civil partner may be able to inherit some or all of a top-up made by the deceased person.
The amount available depends on the type of top-up and the circumstances surrounding it. Anyone who believes their partner had increased their State Pension through a top-up should contact the Pension Service to establish what can be inherited.
New
The New State Pension has different inheritance provisions from the Basic State Pension.
A widow or widower may be able to inherit an additional amount on top of their own New State Pension. The amount depends on the deceased person’s National Insurance record and the particular components of their State Pension.
There is also an important restriction involving remarriage and new civil partnerships. A person generally cannot inherit certain amounts from a deceased partner if they remarry or form a new civil partnership before reaching State Pension age.
Because these rules can depend on dates and individual circumstances, checking the position with the DWP is important before making assumptions about entitlement.
Additional
Some people may be able to inherit part of their deceased partner’s Additional State Pension.
This can apply where the marriage or civil partnership began before April 6, 2016 and specific conditions are met.
For example, the deceased partner may have reached State Pension age before April 6, 2016. Alternatively, they may have died before that date but would have reached State Pension age on or after April 6, 2016.
The amount that can be inherited depends on the individual’s circumstances and the type of pension entitlement involved.
Protected
Protected payments are another area where inheritance may apply.
A surviving spouse or civil partner can inherit half of their partner’s protected payment if the required conditions are satisfied. These include the marriage or civil partnership having started before April 6, 2016, the survivor reaching State Pension age on or after that date, and the partner dying on or after April 6, 2016.
The inherited protected payment is made alongside the survivor’s State Pension.
These rules illustrate why the date a couple married or entered a civil partnership can be important when determining entitlement.
Lump
In some circumstances, a surviving spouse or civil partner may inherit part or all of a partner’s extra State Pension or a lump sum linked to deferral.
This can apply when the deceased was deferring their State Pension or had begun claiming it after a period of deferral. Other conditions include the deceased reaching State Pension age before April 6, 2016 and being married or in a civil partnership when they died.
The rules are specific, so anyone who believes this may apply should contact the Pension Service for an individual assessment.
The main point for families is that State Pension inheritance is not governed by one simple rule. The outcome can depend on the type of pension, National Insurance records, State Pension age, marriage or civil partnership dates, and whether the deceased had additional or protected payments. Anyone dealing with a bereavement should notify the Pension Service and ask what, if anything, the surviving partner or estate may be entitled to receive. The GOV.UK State Pension checker can also help people review their own entitlement.
FAQs
Can a spouse inherit State Pension?
A spouse may inherit some pension benefits in certain cases.
What happens when a pensioner dies?
The Pension Service should be informed of the death.
Can Basic State Pension be inherited?
Some Basic State Pension entitlement may be inherited.
Can New State Pension be inherited?
A surviving spouse may inherit certain additional amounts.
Does remarriage affect inheritance?
Remarriage before State Pension age can affect entitlement.
