State pension could be inherited – could you get the ‘extra payment’?

State Pension: Expert outlines criteria to qualify

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The state pension forms a vital part of retirement income for millions of people. When a person passes away, their grieving spouse may also be concerned about their finances.

However, the state pension can be inherited in certain circumstances, offering support to those left behind.

The rules laid out by the Government regarding this are very specific.

People who are widowed may be able to inherit what is known as an “extra payment” on top of their new state pension.

However, individuals cannot inherit anything if they remarry or form a new civil partnership before reaching state pension age.

When it comes to the Additional state pension, the sum can be inherited – at least in part.

This is the case if a couple’s marriage or civil partnership began before April 6, 2016.

One of the following must also apply:

  • The 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 this date

Inheritance of the Additional state pension sum should be paid out with a person’s usual state pension.

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Protected payments can also be inherited, but only half of their value.

In this instance, the partnership or marriage must have begun before April 6, 2016.

The deceased partner must have died on or after April 6, 2016, or have their state pension age on or after this date.

Finally, certain individuals may be able to inherit some or even all of a partner’s extra state pension or lump sum.

The deceased partner must have died while they were deferring their state pension – before claiming – or have started a claim after deferring.

They must have also reached state pension age before April 6, 2016.

The couple must have also been married or in the civil partnership when the individual died.

Until April 1977, some married women will have paid a reduced rate of National Insurance known as the small stamp.

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The reduced rate is 7.1 percent of a person’s weekly earnings between £190 and £967 if they are employed.

This may also be the case for those who have been widowed.

The Government has explained these women may be able to increase their new state pension.

However, they will need to check the Government’s website to find out more about their eligibility. 

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