The Department for Work and Pensions (DWP) has clarified the rules regarding state pension inheritance following the death of a spouse or loved one. With over 13 million older people across the UK receiving state pensions, including 1.1 million in Scotland, understanding these regulations is crucial. Currently, five million individuals claim the New State Pension, while the majority receive the Basic State Pension, depending on their date of birth. Here is what you need to know about what happens when a loved one passes away.
Stopping Payments After a Death
When someone dies, their pension payments will not automatically cease. Therefore, it is essential to take action promptly. The first step is to contact the Pension Service at 0800 731 0469 to stop the payments. Failure to do so may result in overpayments that could need to be repaid.
Inheriting Extra Payments
There is a possibility that you could be entitled to additional payments from a deceased loved one's State Pension. However, this depends on several factors, including the deceased's National Insurance contributions. The rules differ based on when the deceased reached state pension age.
If the Deceased Reached State Pension Age Before April 6, 2016
If your loved one reached state pension age before April 6, 2016, you should contact the Pension Service to check what inheritance benefits may be available. This applies to those receiving the Basic State Pension.
If the Deceased Reached State Pension Age on or After April 6, 2016
For those who reached state pension age on or after April 6, 2016, or were under state pension age when their spouse or civil partner died, the UK Government website provides a tool to check what inheritance you may be entitled to. This tool can help determine if you can inherit extra payments on top of your New State Pension.
Eligibility for Inheritance
Individuals who are single, divorced, or have had their civil partnership dissolved may be able to claim part of a Basic State Pension. If you are widowed, you may be able to inherit extra payments on top of your New State Pension. However, if you remarry or form a new civil partnership before reaching state pension age, you cannot inherit anything.
Additional State Pension Inheritance
If your marriage or civil partnership began before April 6, 2016, and either the deceased partner reached state pension age before that date, or they died before April 6, 2016, but would have reached state pension age on or after that date, you may inherit part of their Additional State Pension.
Deferred State Pension
If your partner died while deferring their State Pension or had started claiming it after deferring, and they reached state pension age before April 6, 2016, or were married or in a civil partnership when they died, you may inherit part of their State Pension or a lump sum.
State Pension Rates for 2026-2027
- Full New State Pension: Weekly £241.40, Four-weekly £965.20, Annual £12,547
- Full Basic State Pension: Weekly £184.90, Four-weekly £739.60, Annual £9,614
