Many pensioners may not realize they could be entitled to an extra £5,000 a year on top of their State Pension—simply by inheriting pension benefits from their late spouse or civil partner.
Recent figures reveal that over 500,000 pensioners are already benefiting from this inheritance rule, with some receiving more than £10,000 extra per year. But many eligible retirees remain unaware of this financial boost.
How Does This Work?
Before 2016, the UK had a system called SERPS (State Earnings-Related Pension Scheme). If someone built up extra pension through SERPS and passed away, their surviving spouse or civil partner could inherit a portion of it.
This inheritance is separate from the survivor’s own State Pension and can significantly increase their retirement income. In some cases, this means a pensioner could receive over £20,000 a year in total.
Who Qualifies for This Pension Boost?
If your late spouse or civil partner was paying into SERPS, you may be entitled to inherit some of their extra pension payments. The amount you can receive depends on:
- How much SERPS pension your spouse built up
- When they passed away
- Your own State Pension entitlement
According to a Freedom of Information request by Royal London, during the 2023/24 tax year, more than two million pensioners received inherited SERPS payments. Among them:
- 541,760 received more than £5,000 extra per year
- 17,460 pensioners got over £10,000 annually
These numbers show just how valuable this pension inheritance can be.
Are You Missing Out? Here’s What to Do
Many people are unaware they qualify for this extra pension, and if you’re a widow, widower, or surviving civil partner, you might be one of them. Here’s how to check:
- Look at Your National Insurance Record – If your late spouse had built up SERPS, you could be entitled to some of it.
- Contact the Pension Service – Call or visit the UK government’s pension office to check if you’re eligible.
- Seek Financial Advice – A professional can help you navigate the system and make sure you’re getting everything you’re owed.
Time Is of the Essence
Since the 2016 State Pension reform, the rules around inherited pensions have changed. The current system does not allow new SERPS inheritance claims, meaning this benefit is only available to those who were already part of the older pension system.
With thousands of pounds at stake, it’s crucial to check whether you’re entitled to these payments before time runs out.
