State Pension when spouse passes away

MonkseyBoy

Hi everyone.
First time poster here. I've been trying to figure out my mum's State Pension entitlement but not able to find definitive answer online. Here's the scenario:

• My dad passed away in June 2020, at the age of 64, one year away from State Pension age. He made full contributions and would have received the full state pension of £175 per week. He died of an occupational disease (asbestos-related)
• My mum is also 64 and will claim State Pension in February 2022. She hasn't made full contribution. Her forecast is £115 per week. She has 21 full years and 27 years where she hasn't contributed enough
• My dad was a self-employed builder and my mum, in recent years has been a housewife
• My mum has over £16,000 in savings from an inheritance in 2017 when my dad's father passed away

My question is: Can anything from my dad's state pension be used to help increase my mum's State Pension entitlement? I know that my mum can make further NI contributions to boost her pension forecast - but this looks like costing 10k to increase it to the full £175 per week. It seems unfair that my dad didn't get to retirement and had a full contribution and my mum will have to use her savings to boost hers to the full amount.
We are aware that my mum should receive a Bereavement payout of £2,500 and a further monthly payment of £100 per month up to 18 months. £100 a month still doesn't seem a lot to live on and doesn't see her to retirement in Feb 2020. It feels a little like she has slipped through the cracks.
Any advice or info would be most welcome. Thanks!

LHW99

Are these any help?

https://www.gov.uk/death-spouse-benefits-tax-pension/benefits

https://www.gov.uk/death-spouse-benefits-tax-pension/pensions

Linton

Summary of the LHW99 links...As both your father and mother were due to reach SP age after April 2016 they come under the new pension rules whereby SP is not inheritable EXCEPT that if your father had accrued more than the standard SP thanks to pre-2016 SERPs/ASP payments then half the extra can be inherited. Though as you said that his entitlement was just the standard amount this exception would not apply.

Note that buying extra NI is a very good deal. The £10K paid would be recovered in extra SP in 3-4 years and beyond that the extra would all be profit.

Has your mother checked on what benefits, if any, she would be entitled to? Are there any benefits arising because your father died of an industrial disease?

MonkseyBoy

Thanks Linton. That's very helpful.
That's what i feared would be the case. Seems my mum suffers from the changes in 2016 and being 20 months from retirement. I'm trying to persuade my mum to make that 10k investment in NI.
My dad's death was mesothelioma and that means an entitlement to one-off compensation, based on his age I was wondering if my mum would get any other benefits or additions to her pension as a consequence...

xylophone

Did your father have any pension provision other than state pension from which your mother will benefit?

The compensation due in respect of the asbestos exposure will help cover her expenses?

She should contact the Future Pension Centre to check which years she can buy most cheaply - see https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/topping-up-your-state-pension-guide.pdf page 6.

https://www.gov.uk/future-pension-centre

mark55man

Persuade your mum that getting the extra NI years will be probably the best return on any pension related investment.  I know its a lot of money and a big proportion of her savings, but my OH will be a few years short and I'm definitely going to do it, but just waiting for the best time and the cheapest.

in_my_wellies

Was your mum a carer for your dad? If she received Carers Allowance she should have NI Credits . Even if she wasn't a 'carer' and receiving Carers Allowance she could still receive NI Credits if the GP signs the medical form says he needs care and she provides it. 

I'm not sure this can be backdated after death but it would save your mum purchasing some NI years if it could be 

Apologies if this is incorrect, I'm just explaining the position I am in with my mother