State Pension payment inheritance rules after a spouse or loved one dies
A State Pension claim from the DWP does not end automatically when a loved one dies.
More than half a million people are boosting their State Pension by over £5,000 annually through inheritance, according to figures obtained by a pension provider. A freedom of information (FOI) request by pensions mutual Royal London indicated that in the tax year 2023/24 more than two million pensioners (around 2,027,440) received a payment from an inherited state earnings-related pension scheme (Serps).
This was part of the old State Pension system, which enabled people to build up an entitlement to extra State Pension income. According to the figures, around 541,760 pensioners were receiving more than £5,000 a year in inherited Serps payments, including 17,460 who received more than £10,000.
If someone’s spouse or civil partner dies, they may be able to inherit part of their additional State Pension, which will be paid on top of the surviving spouse’s State Pension when they reach the official age of retirement, which is currently 66.
Surviving spouses and civil partners can potentially inherit up to an annual maximum of around £11,356.28 (£218.39 per week) for the current 2025/26 tax year.
The data was released by the Department for Work and Pensions (DWP) and taken from its quarterly statistical inquiry. According to the figures obtained by Royal London, the average annual inherited Serps payment for 2023/24 was £3,377.
As a result of the inherited pension boost, some people could be receiving as much as £20,000-plus per year in an enhanced State Pension. A new, simplified, ‘New State Pension’ system was introduced in April 2016.
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Royal London’s consumer finance specialist Sarah Pennells said: “This data shows how much of a difference inheriting a Serps pension from your husband, wife or civil partner can make. The worry is that, while more than two million people are claiming inherited Serps, others could be missing out.
“Understanding the rules is key to boosting your retirement income.”
She continued: “As we continue to adapt to the new system introduced in 2016, which focuses on individual entitlements, understanding the legacy of Serps and its relevance for thousands of retirees remains crucial.”
Royal London advises anyone unsure about their inherited Serps entitlements to contact the Pension Service to find out what they should be receiving - full details can be found on GOV.UK here.
More State Pension News
State Pension payments after someone dies
A claim for State Pension won't just end when someone dies, there are things you need to do. When the person dies, you must inform the Pension Service so payments stop - you can do this by calling the Pension Service helpline on 0800 731 0469.
You may be entitled to extra payments from your deceased spouse's or civil partner's State Pension, however, this depends on their National Insurance Contributions, and the date they reached the State Pension age.
If you haven't reached State Pension age yet, you might also be eligible 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 may be that they can increase their Basic State Pension by using the deceased’s qualifying years if they do not already get the full amount.
Should they have reached State Pension age on or after April 6, 2016, or be under State Pension age when their spouse or civil partner dies, the “Your partner’s National Insurance record and your State Pension” tool on the UK Government website can enable a person to check what inheritance they may be entitled to.
For people who are single or divorced, or who have had their civil partnership dissolved, it may be that their estate can claim some of a Basic State Pension.
This is if that person dies after reaching State Pension age, and only if the State Pension had not been claimed. In this circumstance, the estate can claim up to three months of the Basic State Pension.
Extra money from deferring State Pension
Once someone reaches State Pension age they can defer payments if they choose to carry on working. Doing this will actually increase payments when they eventually decide to claim by around £660 each year.
State Pension top-up
Guidance on GOV.UK states anyone who has topped up their State Pension, the spouse or civil partner may be able to inherit some or all of the top up.
More Benefits News
Inheritance: New State Pension
It may be that a person is able to inherit an extra payment on top of their new State Pension if they are widowed.
However, an individual cannot inherit anything should they remarry or form a new civil partnership before they reach State Pension age.
Inheriting additional State Pension
If a marriage or civil partnership began before April 6, 2016 and one of the following circumstances applies, then a person may inherit part of their deceased partner’s Additional State Pension. These are:
- 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.