Widow's entitlement to part of husband's state pension

Bathman

I deferred my state pension for four years, but I have just reinstated it. I have received a statement from the DWP giving me the option of either a lump sum payment or an extra state pension. I understand that I have 3 months in which to make a decision. I am now 69 years old, and my original plan was to take the extra state pension as it seems to be such a good deal compared with current annuity rates. Unfortunately I have just been diagnosed with prostate cancer, so this will obviously have an effect on my decision. Hopefully treatment will be successful and I will be around for many more years, but I do need to consider my wife's position.

I understand that if I take the extra state pension, my wife (who is 65 and also receiving a state pension) would continue to receive half of it in the event of my death. Even at 50%, my extra state pension still seems to an attractive option compared with taking the lump sum. But I need to make absolutely sure that my wife would receive it, and I am having difficulty getting anyone at the DWP to definitely confirm this.

I am also trying to find out exactly what proportion, if any, my wife would receive of the rest of my state pension. Apart from the basic pension, I get various additional amounts based on the following:

Earnings between 6 April 1978 and 5 April 1997
Earnings between 6 April 1997 and 5 April 2002
Earnings from 6 April 2002

In addition I receive Graduated Retirement Benefit based on contributions made between 1961 and 1975.

Can I assume that my wife would receive 50% of all these additional State Pension amounts in the event of my death? Any advice would be much appreciated.

kidmugsy

Bathman wrote: »

I deferred my state pension for four years, but I have just reinstated it. I have received a statement from the DWP giving me the option of either a lump sum payment or an extra state pension. I understand that I have 3 months in which to make a decision. I am now 69 years old, and my original plan was to take the extra state pension as it seems to be such a good deal compared with current annuity rates. Unfortunately I have just been diagnosed with prostate cancer, so this will obviously have an effect on my decision. Hopefully treatment will be successful and I will be around for many more years, but I do need to consider my wife's position.

I understand that if I take the extra state pension, my wife (who is 65 and also receiving a state pension) would continue to receive half of it in the event of my death. Even at 50%, my extra state pension still seems to an attractive option compared with taking the lump sum. But I need to make absolutely sure that my wife would receive it, and I am having difficulty getting anyone at the DWP to definitely confirm this.

I am also trying to find out exactly what proportion, if any, my wife would receive of the rest of my state pension. Apart from the basic pension, I get various additional amounts based on the following:

Earnings between 6 April 1978 and 5 April 1997
Earnings between 6 April 1997 and 5 April 2002
Earnings from 6 April 2002

In addition I receive Graduated Retirement Benefit based on contributions made between 1961 and 1975.

Can I assume that my wife would receive 50% of all these additional State Pension amounts in the event of my death? Any advice would be much appreciated.

I'm in a similar position except that I haven't yet stopped my deferral. As I understand it, when I die:

(i) My wife will inherit part of my Basic State Pension, to make hers up to 100%. [I think this happens by her inheriting all of mine and her own being suppressed, but the effect is the same.]

(ii) She will inherit 50% of my Additional Pension i.e. the bit relating to SERPS/S2P plus GRB.

I'm pretty confident of those two, but would welcome other people's knowledge of the third bit.

(iii) She will inherit 100% of the part of my Extra Pension that corresponds to Basic Pension, and 50% of the part that corresponds to Additional Pension.

xylophone

https://www.gov.uk/state-pension/further-information

"Extra money from deferring your State Pension

If you decided to defer your State Pension and built up an extra amount, your spouse or civil partner may either claim the extra State Pension or get a lump sum.

If you deferred for less than 12 months your spouse or civil partner can only get extra State Pension, not a lump sum.

If you deferred for 12 months or more they can choose to get extra State Pension or a lump sum payment. Provided they haven’t remarried or formed a new civil partnership since your death they can get this when they reach State Pension age."

SeekTruth

kidmugsy wrote: »

...

(iii) She will inherit 100% of the part of my Extra Pension that corresponds to Basic Pension, and 50% of the part that corresponds to Additional Pension.

See page 33 of https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299286/dwp024-apr-14.pdf

kidmugsy

Thanks, both.