DWP £20,000 per Year: Security in financial life after retirement is a great concern of every individual particularly where he is left alone with the demise of a life partner. In that case, in case the government will provide additional help with the pension, then it will be able to make this period of life a bit easier. The number of pensioners in the UK who receive a good sum of money in the form of Inherited State Pension on the demise of a spouse is quite high.
This paper shall have a clear understanding of what constitutes State Earnings-Related Pension Scheme (Serps), who is entitled to enjoy its benefits and also how this can be accessed.
What is Inherited State Pension (Serps)?
The State Earnings-Related Pension Scheme, Serps, was one of the old state pension systems in the United Kingdom that was meant to take care of the individuals who had acquired extra pension due to what they had paid as National Insurance.
Where someone has a spouse or civil partner who dies and had been paying into Serps, the surviving spouse or partner can get some of that extra pension. In some cases, this would be higher than the 5,000 per annum that can offer a huge income supplement in retirement.
There are now more than 2 mn pensioners who succeeded to a Serps pension in 2023/24. Among the latter, there were more than 500,000 individuals who were getting an extra salary of above 5,000 pounds annually.
This inheritance would be as much as 11356 pounds in a year of 2024/25 (or 218.39 Lin each week). There are other fortunate individuals who are getting more as much as 20,000 pounds.
Who is eligible?
A person must meet certain conditions to inherit their spouse’s pension:
- The spouse or civil partner has died and that person is or has received a state pension.
- You must be State Pension Age (currently 66 years old).
- You must not have remarried or entered into a civil partnership, particularly if you have not yet reached pension age.
Should the individual attain the state pension age prior to 6 April 2016 the system under which his/her pension was provided was covered by Serps, and up to 100 per cent of his/her additional pension may transfer to his/her partner on his/her death.
How much is eligible?
The amount you may inherit depends on:
- how many years the deceased partner contributed to National Insurance,
- how much they invested in Serps or other additional schemes,
- and whether they had any top-ups to their pension.
In 2024/25 the benefit limit is 11,356.28 per year or 218.39 per week. This could depend on an individual.
What to do to inherit a pension?
If you think you may be entitled to part of your spouse’s pension, you should contact the Pension Service.
- In case your partner passed away on having attained the pension age before 6 April 2016, you are allowed to view his or her National Insurance record to determine the amount of which you are entitled.
- Where your partner failed to claim the pension, you can claim your pension using their account which will give you three months of the basic state pension.
- People under state pension age may prefer to go to the Government website and check whether the contribution of their partner can be of any use to them.
What happens after death?
When a person dies his/her pension does not automatically cease. It must be reported to the Pension Service by a family member who has to have payments stopped.
In addition, the surviving spouse might also enjoy bereavement after death, whereby it depends on the insurance record of the deceased individual. To get this, you can call 0800 731 0469.
Some other important things
- In case a person was to make a spillover of his/her pension the funds can be inherited by a spouse. This can only be true when the surviving partner has not been remarried or formed a civil union in case he/she is not yet at pensionable age.
This inheritance comes in handy to the individuals who do not get some income during retirement. However, this advantage belongs to people who have appropriate knowledge of the rules and can act on time.
Conclusion
Having State Pension, particularly through the various social security schemes such as Serps, may become a veritable life preserver, particularly when you are in need of something to cling to during a period of loneliness in life coupled with financial insecurities. However, to make maximum use of it, an understanding of the rules and action on time of the right type would be needed.
In case you are not sure whether you are able to claim it, then it is the best to use the Pension Service or refer to the official site. A small amount of consciousness can make your retirement more stable and respectful.
FAQs
Q1. Who can inherit a state pension in the UK?
Surviving spouses or civil partners who have reached state pension age and meet eligibility criteria can inherit part of their partner’s state pension.
Q2. How much inherited pension can someone receive?
The amount varies, but for 2024/25, it can be up to £11,356.28 annually or £218.39 per week.
Q3. Can I inherit my partner’s pension if I remarry?
No, if you remarry or enter a new civil partnership before reaching state pension age, you lose the right to inherit your previous partner’s pension.
Q4. What is Serps in the UK pension system?
Serps stands for State Earnings-Related Pension Scheme, an old system that provided additional pension benefits based on National Insurance contributions.
Q5. How do I claim an inherited state pension?
Contact the Pension Service and review your partner’s National Insurance record to check eligibility and start the claim process.
