Considering what happens to your state pension after you die may not have occurred to you and may not be a topic you feel comfortable discussing with loved ones. However, it’s an important conversation you should have, so everyone knows what to do in the event of the death of a loved one. It also helps ensure that the pension money goes to the correct place.
What happens immediately after death?
It’s important to know that when someone who is receiving the state pension dies, their payments do not automatically continue. You’ll need to notify the Department for Work and Pensions (DWP) as soon as possible so that the pension payments can be stopped. You can do this via the government’s ‘Tell Us Once’ service, which notifies various departments simultaneously, including pensions, benefits and HMRC.
If a payment is made after the death date, it will likely need to be repaid. Equally, if money is owed up until the day of death, this can usually be claimed by the estate.
What state pension payments may be due after death?
When a pensioner dies, their state pension stops at that point. However, their spouse or civil partner may still be able to benefit. It will depend if the deceased reached state pension age before or after April 6 2016, when the system changed:
- For people who reached state pension age before April 2016: their spouse or civil partner may be able to inherit part of their additional state pension, sometimes called SERPS or the State Second Pension.
- For people who reached state pension age after April 2016: the rules are different. Their partner might inherit some of the ‘new state pension’ if they were married or in a civil partnership at the time of death.
Under these rules, not everyone can inherit a state pension, but it’s worth checking with the DWP to see if you qualify, as any payments can make a real difference.
Claiming bereavement benefits
Alongside state pension rules, the government also provides bereavement benefits. If your spouse or civil partner dies and you are under state pension age, you may be entitled to the Bereavement Support Payment.
This is a tax-free lump sum followed by monthly payments for up to 18 months. The amount depends on your circumstances, such as whether you have children. While it is separate from the state pension, it is part of the wider financial support available after a death and is worth exploring.
Can I backdate state pension claims for a deceased person?
If the person who died had not yet claimed their state pension, but was eligible, their estate may be able to claim payments they missed out on. For example, if they delayed claiming after reaching state pension age, the money they were entitled to might be due as arrears. These funds would usually go to the estate and then be distributed according to the will or the rules of intestacy.
Looking for more support?
Whether you need help planning a funeral or you’re writing a eulogy and could do with an easy-to-follow template, have a look at Fiesta Farewell. Our online platform offers a range of helpful guides and support to help you plan a funeral as stress-free as possible.
