How your State Pension is affected after death | Personal Finance | Finance
If your spouse or civil partner has passed away, you might be able to increase or inherit additional State Pension. The current State Pension stands at £203.85 a week for those who receive the full amount, but this is set to rise to £221.20.
The maximum claimable amount for the basic state pension is presently £156.20 a week, which will increase to £169.50. However, not everyone is eligible for a full State Pension.
Your eligibility hinges on your National Insurance record and the number of qualifying years you have when you apply for your State Pension. You can claim the new State Pension if you’re a man born on or after April 6, 1951, or a woman born on or after April 6, 1953, reports the Mirror.
Those born before these dates will be claiming the old basic State Pension, reports the Mirror. If both you and your partner reached State Pension age before April 6, 2016, and you’re not claiming the full amount of basic State Pension due to insufficient National Insurance contributions, you may be able to boost your payments based on your partner’s record.
The rules around inheriting state pensions can be intricate, with different outcomes depending on your relationship status. If a spouse or civil partner gets married again or enters a new civil partnership before reaching the age for the State Pension, they lose the ability to increase their pension from your contributions.
Conversely, singles, divorcees, or individuals who have dissolved their civil partnerships could see their estate claim up to three months of the basic State Pension.
In cases where marriage or civil partnership occurred before April 6, 2016, there’s a chance to inherit a portion of your deceased partner’s additional State Pension or protected payment, and possibly even part or all of their deferral benefits if they postponed claiming their State Pension and were of eligible age before that date.
Given the complexity of these arrangements, seeking free advice from the Pension Service is recommended to explore potential enhancements to your pension. Estate, planning and wills expert Steve Bish, from Bish Estate Planning, alerts that “The State Pension doesn’t necessarily stop automatically on the death of a recipient.”
He elaborated on the responsibilities falling on the next of kin or estate administrators, pointing out: “The next of kin or estate administrator has a responsibility to notify the pension service. There are many things to consider including the recipient’s marital status and even the date of death and the date of the last payment received.”
Bish commented: “If the recipient was of pension age but had deferred their pension in order to receive large payments at a later date, then the estate can claim unpaid pension. Sometimes, your husband, wife, or civil partner (if you have one) could inherit some of your State Pension. This depends on the amount of National Insurance contributions you both made and when you both reached, or will reach, State Pension age.”
