The State Pension is a vital income source for many older adults in Great Britain. It provides financial assistance to those who have reached retirement age and have contributed adequately to National Insurance. This guide outlines the different types of State Pension, eligibility requirements, and procedures following a beneficiary’s death.
Contents
- Rules for New and Basic Payments
- Types of State Pension
- Eligibility Criteria
- State Pension Payments After Death
- Notifying the Pension Service
- Eligibility for Additional Payments
- Inheriting Basic State Pension
- Single, Divorced, or Dissolved Civil Partnership
- Additional Benefits from Deferring State Pension
- State Pension Top-Up
- Inheriting New State Pension
- Widowed Individuals
- Inheriting Additional State Pension
- Inheriting a Protected Payment
- Inheriting Extra State Pension or Lump Sum
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Rules for New and Basic Payments
The State Pension offers a regular income to nearly 12.7 million older adults in Great Britain, including over 1.1 million in Scotland. It is administered by the Department for Work and Pensions (DWP) and is available to those who have reached the retirement age of 66 and have at least ten years of National Insurance contributions.
Types of State Pension
- New State Pension:
- Recipients: 3.4 million individuals
- Weekly Payment: Up to £221.20
- Payment Schedule: £884.80 every four weeks
- Basic State Pension:
- Recipients: 9.3 million individuals
- Weekly Payment: Up to £169.50
- Payment Schedule: £648 every four weeks
Eligibility Criteria
- Basic State Pension: Men born before April 6, 1951, and women born before April 6, 1953.
- New State Pension: For individuals born after these dates.
State Pension Payments After Death
Notifying the Pension Service
Notifying the Pension Service when someone passes away to halt payments is crucial. You can do this by calling their helpline at 0800 731 0469.
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Eligibility for Additional Payments
You might qualify for additional payments from your deceased spouse’s or civil partner’s State Pension based on their National Insurance contributions and the date they reached State Pension age.
Inheriting Basic State Pension
- Before April 6, 2016:
- If your civil partner or spouse reached State Pension age before this date, contact the Pension Service to investigate potential claims. If they are not already receiving the full amount, it’s possible to boost their Basic State Pension by using the qualifying years of the deceased.
- After April 6, 2016:
- If they reached State Pension age on or after this date or were under State Pension age when their spouse or civil partner died, use the “Your partner’s National Insurance record and your State Pension” tool on the UK Government website to verify possible inheritance.
Single, Divorced, or Dissolved Civil Partnership
For those who are single, divorced, or have had their civil partnership dissolved, the estate may claim part of the Basic State Pension if the person died after reaching State Pension age and had not claimed the pension. The estate can claim up to three months of Basic State Pension.
Additional Benefits from Deferring State Pension
Postponing State Pension payments can increase the amount received by approximately £660 annually when claimed.
State Pension Top-Up
Guidance on GOV.UK suggests that anyone who has increased their State Pension can allow their spouse or civil partner to inherit some or all of the top-up.
Inheriting New State Pension
Widowed Individuals
Widowed individuals may be eligible to receive an additional payment on top of their new State Pension. However, they cannot inherit anything if they remarry or form a new civil partnership before reaching State Pension age.
Inheriting Additional State Pension
An individual might receive a share of their late spouse’s Extra State Pension if their marriage or civil partnership commenced prior to April 6, 2016, and if one of the following conditions is met:
- The deceased partner became eligible for the State Pension before April 6, 2016.
- They died before April 6, 2016, but would have reached pension age later.
Inheriting a Protected Payment
If a marriage or civil partnership began before April 6, 2016, and a person will receive half of their partner’s protected payment through inheritance.
- Their State Pension age is on or after April 6, 2016.
- Their partner died on or after April 6, 2016.
This payment will be included with the State Pension.
Inheriting Extra State Pension or Lump Sum
An individual might inherit all or part of their partner’s additional State Pension or lump sum if:
- Their partner passed away while delaying their State Pension or had begun claiming it after deferral.
- Their partner became eligible for the State Pension before April 6, 2016.
- They were married or in a civil partnership at the time of their partner’s death.
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