Beware State Pension shock when partner dies

westport

I phoned the State Pension line to find out what happens if your partner dies under the new State Pension scheme, if you have both qualified for the full amount. I could not believe what I was hearing when I was told that you will get nothing from your partners pension, unless you have made any additional contributions before April 2016, which I am sure the majority of us will not have done, as it would have just been taken directly from your employer. So when a partner passes away you will still have the same household bills, but will only get half the income. This needs to be publicised or a lot of people are in for a big shock.

kidmugsy

westport wrote: »

I phoned the State Pension line to find out what happens if your partner dies under the new State Pension scheme, if you have both qualified for the full amount. I could not believe what I was hearing when I was told that you will get nothing from your partners pension, unless ...

You must shock easily. That was the state of play for the old-style pensions too, for decade after decade.

westport wrote: »

... unless you have made any additional contributions before April 2016, which I am sure the majority of us will not have done, as it would have just been taken directly from your employer.

I think you've misunderstood this bit, presumably because of your state of shock. Whether additional pension is due will depend on such things as your earning levels, and whether you were in a contracted-out occupational pension.

JoeCrystal

westport wrote: »

I phoned the State Pension line to find out what happens if your partner dies under the new State Pension scheme, if you have both qualified for the full amount. I could not believe what I was hearing when I was told that you will get nothing from your partners pension, unless you have made any additional contributions before April 2016, which I am sure the majority of us will not have done, as it would have just been taken directly from your employer. So when a partner passes away you will still have the same household bills, but will only get half the income. This needs to be publicised or a lot of people are in for a big shock.

Seriously? Same household Bills? Not really but then, it is more expensive for a single person living on his/her own but still less than same household Bills for two people.

Dorian1958

Many widows/widowers will benefit from receiving a proportion (usually 50-60%) of their deceased partner's pension from their employer. Does that apply to you, if so have you checked the rules? If you/they have a DC pot have the wishes been specified in the event of a death?

westport

If you ask me, the state pension is far too complicated. The woman I spoke to at the so called helpline, was unable to tell me how much 50% of my partners contributions up to 2016 would add up to, there is no pension calculator to work this out, and when you get your list of N.I conts from the Gov website, all it tells you is that you paid for that year. It should clearly show what you would be entitled to for each year if you were to lose your partner. So at the moment it's pot luck when this happens to a couple as no one has a clue what to expect. What a ridiculous system.
As for the household bills, what I meant was, mortgage/rent, gas, electric, buildings & contents insurance, water bills etc. Your money will soon disappear when there is only one pension coming in nevermind two.

TARDIS

I'm sorry it's come as a shock to you, but I thought this was common knowledge.
I hope you and your partner still have time to plan for this scenario, if not I can see why it would be so much of a shock.

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

noh

westport wrote: »

If you ask me, the state pension is far too complicated. The woman I spoke to at the so called helpline, was unable to tell me how much 50% of my partners contributions up to 2016 would add up to, there is no pension calculator to work this out, and when you get your list of N.I conts from the Gov website, all it tells you is that you paid for that year. It should clearly show what you would be entitled to for each year if you were to lose your partner. So at the moment it's pot luck when this happens to a couple as no one has a clue what to expect. What a ridiculous system.
As for the household bills, what I meant was, mortgage/rent, gas, electric, buildings & contents insurance, water bills etc. Your money will soon disappear when there is only one pension coming in nevermind two.

I know what to expect.
If my wife predeceases me I will get nothing from her state pension.
If I predecease her she will get £4.60 a week extra at todays rate, from mine (50% of my protected payment)
See
https://www.gov.uk/new-state-pension/inheriting-or-increasing-state-pension-from-a-spouse-or-civil-partner

Stubod

I think this is fairly common knowledge, (at least among everybody I have spoken to over the last few years).

I think its always been the same? When my dad went a few years ago, (he only got the state pension), my mom did not get anything other than her own (very small, 80 odd quid I think) state pension to live off. However this could be increased but any increase was based on a means test and she had some savings so did not qualify for anything else. More recently my cousin passed away at 62, (ie prior to receiving the SP), and although they paid in all their working life their spouse does not get anything.

.I understood it's how the system works. You pay in all your working life, some benefit by living to 100+, some loose by passing on before they collect anything..

michaels

noh wrote: »

I know what to expect.
If my wife predeceases me I will get nothing from her state pension.
If I predecease her she will get £4.60 a week extra at todays rate, from mine (50% of my protected payment)
See
https://www.gov.uk/new-state-pension/inheriting-or-increasing-state-pension-from-a-spouse-or-civil-partner

You have to laugh, I was mid 40s in April 2016 and my basic plus additional pension entitlement was pretty much equal to the new state pension, so no protected entitlement for me or my wife and all the NI I pay over the next 20 years will add zero to my pension entitlement

xylophone

think its always been the same? When my dad went a few years ago, (he only got the state pension), my mom did not get anything other than her own (very small, 80 odd quid I think) state pension to live off.

If this was pre 2016 changes, then your mother should have been able to use her late spouse's record if this was better than hers in order to increase her state pension.
This would not have been means tested - however, if she also tried to claim Pension Credit, then her income and savings would have been taken into account.

https://www.savvywoman.co.uk/2012/07/what-happens-to-your-state-pension-when-you-die/