State Pension Inheritance

Dunwunderin

Hi,


My wife and I have independent Occupational Pensions which will on the death of first spouse pay out a residual pension of 2/3 to the surviving spouse.

We also have independent state pensions/SEPS. What is the situation with these pensions if one spouse were to die?

Sorry to sound so morbid but the financial side needs to be considered!

Regards

EdInvestor

Some info here:

http://www.thepensionservice.gov.uk/serps/

dzug

Dunwunderin wrote: »

Hi,


My wife and I have independent Occupational Pensions which will on the death of first spouse pay out a residual pension of 2/3 to the surviving spouse.

We also have independent state pensions/SEPS. What is the situation with these pensions if one spouse were to die?

Sorry to sound so morbid but the financial side needs to be considered!

Regards

The pension payable to the deceased spouse ceases to be paid. The other pension continues in payment.

DavidLaGuardia

Dunwunderin wrote: »

Hi,


My wife and I have independent Occupational Pensions which will on the death of first spouse pay out a residual pension of 2/3 to the surviving spouse.

Regards

Are the pensions from the same scheme? Some schemes do not pay the spouse pension if the spouse is also a member with their own pension.

Dunwunderin

Hi,
The occupational schemes are totally different so the stated situation does not arise.

So it looks like the State pension dies with you and you get 1/2 Serps pension.
The latter in my case is very small as we were both contracted out.

Most private pensions seem to pay out 1/2 pension to surviving spouse so the State Pension Scheme seems to be very unfair in this respect.

Many thanks for all your comments.

Regards

EdInvestor

IIRC if the surviving spouse receives the "married women's pension" based on 60% of the husbands state pension, then her pension will be made up to the level he got before his death.

But if she has a state pension in her own right (ie her own pension is worth more than 60% of his) then there will be no change on his death.

As mentioned SERPS can be inherited and from 2010, men can get 60% pensions based on their wives' NICs, as above, plus pension made up after death.