For many, the State Pension is a key part of a happy retirement. But what happens to it when you die? Can it be inherited? Can your spouse or civil partner get more money? Let’s find out.
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What are the different types of State Pension?
There are two types of pension that you can claim.
If you were a man born before 6 April 1951 or a woman born before 6 April 1953, you can claim what is called the Basic State Pension.
If you were born after these dates, you’ll claim the New State Pension.
What happens to your pension when you die?
When you die, your spouse or civil partner must inform the Pension Service so that pension payments can stop.
Based on your circumstances, your partner might be able to inherit some of your pension. Whether they’ll actually be able to will depend on:
- The kind of pension you were getting (Basic State Pension or the New State Pension)
- Whether you were married or reached State Pension age before 6 April 2016
1. Basic State Pension
If your partner reached State Pension age before 6 April 2016, and you have a better national insurance record than them, then they may ask for their pension to be based on your record instead of theirs.
If your partner reached State Pension age on or after 6 April 2016 or is under State Pension age when you die, they will need to check with the Pension Service to see what part of your pension they can inherit.
Also, if you opted to defer your pension, for example, in order to build up an extra amount, then your partner might be able to claim the extra pension or get a lump sum. They should contact the Pension Service to know what exactly they can get.
Furthermore, if you topped up your State Pension, your spouse might also be able to inherit some or all of this top-up.
So, what if you are single, divorced or if your civil partnership was dissolved?
In this case, your estate might be able to claim up to three months of your pension (if you had not claimed it). The Pension Service can provide more information on how to make such claims.
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2. New State Pension
The rules are a bit different here.
Your partner might be able to inherit an extra payment on top of their pension if they are widowed. But if they remarry or form a new civil partnership, then they cannot inherit anything.
There are several ways that you could have increased your New State Pension and which your partner could inherit.
Additional State Pension
Your partner might be able to inherit some of your Additional State Pension if:
- You got married or entered a civil partnership before 6 April 2016, and
- You reached State Pension age before 6 April 2016 (or died before 6 April 2016 but would have reached this age on or after the date).
Protected Payment
Your spouse might be able to inherit your Protected Payment if you married them before 6 April 2016 and:
- Your State Pension age is on or after 6 April 2016, or
- You died on or after 6 April 2016.
Extra State Pension or lump sum
Your partner may inherit part of or all your extra State Pension or lump sum if:
- You died while deferring your pension, or
- You started claiming after deferring and if you reached State Pension age before 6 April 2016.
Final word
It might seem difficult to work out what your loved ones could get after you pass away because, as you can see, the rules are a bit complicated.
The best thing to do is to contact the Pension Service. They can provide you with specific guidance and information regarding your pension. You can also seek advice from an independent financial adviser.
