How to claim State Pension payments after a loved one dies

The State Pension, which provides a steady income to 13 million older adults across Great Britain is managed by the Department for Work and Pensions, which many of us know as the DWP.

It’s available to individuals who have reached the UK Government’s retirement age which is currently set at 66 for men and women who have made at least 10 years of National Insurance Contributions.

At present, around 4.1 million people receiving the New State Pension receive up to £221.20 per week, amounting to £884.80 per four-week payment period.

Meanwhile, the majority of claimants, which is around 8.8 million, receive the Basic State Pension, with maximum payments of £169.50 per week or £648 per four-week period.

From April 7, both the New and Basic State Pensions will increase by 4.1%. However, as payments are typically issued in arrears, most recipients will not notice the increase until May.

The type of State Pension an individual receives depends on their date of birth: men born before April 6, 1951, and women born before April 6, 1953, qualify for the Basic State Pension, while those born after these dates receive the New State Pension.

But what happens to State Pension payments when someone passes away?

A State Pension claim does not automatically end when someone passes away; certain steps must be taken. It is important to inform the Pension Service to stop payments, which can be done by calling their helpline at 0800 731 0469.

You might be eligible for additional payments from your deceased spouse’s or civil partner’s State Pension, however, this is contingent on their National Insurance Contributions, and the date they reached the State Pension age, reports the Daily Record. If you haven’t yet reached State Pension age, you may also qualify for Bereavement benefits.

Inheritance: Basic State Pension

Should a spouse or civil partner have reached State Pension age before April 6, 2016, then GOV.UK instructs people to contact the Pension Service once someone dies in order to check what they can claim.

It’s possible that they can boost their Basic State Pension using the deceased’s qualifying years if they do not already receive the full amount.

For individuals who reached State Pension age on or after 6 April 2016 or are below this age when their spouse or civil partner passes away, the “Your partner’s National Insurance record and your State Pension” tool on the UK Government website, provided by the UK Government can help one ascertain any inheritable amounts.

If an individual is single, divorced, or their civil partnership has been dissolved, their estate may be eligible to claim a portion of the Basic State Pension if they pass away after reaching State Pension age without having claimed it. In this scenario, the estate can claim up to three months’ worth of the Basic State Pension.

Extra money – deferring State Pension

Delaying the State Pension can be advantageous for those who reach State Pension age but choose to keep working. By deferring their claim, individuals may increase their annual payments by around £660.

Topping up state pension

As per GOV.UK guidance, if an individual opts to top up their State Pension, their spouse or civil partner may inherit certain increments.

Regarding the New State Pension, a widowed individual may qualify for an additional amount on top of their pension. However, inheritance rights are lost if they remarry or enter a new civil partnership before reaching State Pension age.

Inheriting additional State Pension

The possibility to inherit additional State Pension is yet another aspect to consider for those navigating their financial planning post-bereavement.

If a marriage or civil partnership was established prior to April 6, 2016, and one of the following conditions is met, an individual may be entitled to a portion of their deceased partner’s Additional State Pension. These conditions include:

• The deceased partner reached State Pension age before April 6, 2016
• They died before April 6, 2016 but would have reached State Pension age on or after that date

Inheriting a protected payment

A person will inherit half of their partner’s protected payment if their marriage or civil partnership with them began before April 6, 2016, and:

• Their State Pension age is on or after April 6, 2016
• They died on or after April 6, 2016
• This payment will be made with the State Pension

Inheriting extra State Pension or a lump sum

A person may inherit part of all of their partner’s extra State Pension or lump sum if:

• They died while they were deferring their State Pension or had started claiming it after deferring
• They reached State pension age before April 6, 2016
• They were married or in the civil partnership when they died.

Check your State Pension to calculate how much money you will receive on the GOV.UK website here.