State Pension and Death before retirement

german_keeper

lisyloo said:

german_keeper said:

I agree it's disgusting isn't it. I've never had anything back either. Oh hang on, I've got 3 kids so we have had quite a lot of Child Benefit. And 3 kids educated, and educated very well, at the state's expense. We probably haven't had our money's worth from the NHS. What a shame that the 5 of us have had reasonably good health. We probably haven't had our money's worth from the Police and Fire Brigade - thankfully. And all the rest of it.

My mum never got anything back either, apart from also having 3 kids and the stuff I mentioned above. Mind you she is now as mad as a box of frogs and in a nursing home challenging behaviour unit. A brilliant place which costs an absolute fortune. She also has a one to one carer. All of it is funded by the state under Section 117 of the Mental Health Act. So she is certainly getting her money's worth now. I wish she wasn't.   

Whilst that was amusing to some, I don’t think it’s necessary to be unpleasant.

most pensions are individual pots of money that get passed on after death.
the state pension is more like an insurance policy than an individual pot.
not everyone understands this.

Yes I take your point although I wasn't intending to be unpleasant. Just the sort of comment I hear quite a lot and a subject that does wind me up. So I do apologise to the OP and pass on my condolences for their loss.

relishy57

Sorry for your loss. My husband passed away after only claiming SP for 9 months. My father on the other hand is nearly 96 and like a previous posters parent is getting similar help all funded by the state. I like to think he is benefiting from my husbands payments. It’s like holiday insurance I suppose, you may think fleetingly, “well I never had to claim and use that” but quickly realise that thank goodness you didn’t.

wjr4

SJE89 said:

What happens to your state pension if you die before you reach SRP age?
My mum passed away recently, aged 64, and was due to reach retirement age in June 2023.
Something similar happened with my dad and he died when he was 61. I know my mum received a bereavement benefit (which was pittance)and his private pensions as well as a death in service payment from his work, which my mum's employer is currently sorting out for me too.
But what happens to state pension?
She worked all her life and paid NI contributions and tax, so it seems unfair/disgusting that the govt could just take that money away and my mum, who paid contributions to them all her life, never got to enjoy a penny of it.

I'm still trying to navigate what is a complicated minefield of issues in the wake of her death so trying to cover all bases.

Let’s hope she didn’t have a final salary pension as you’ll be even more disappointed. Sorry got your loss

Flugelhorn

 the comment "She worked all her life and paid NI contributions" in relation to the state pension is not really relevant - NI is just another tax.

I added up how much NI I paid over the years I worked and it came to about £90,000 - how many years pension does that actually equate to ? not many and I was a high earner - most people will not have paid as much - the system relies on people a) not claiming  b) the costs being paid by the current working generation  

Silvertabby

Flugelhorn said:

 the comment "She worked all her life and paid NI contributions" in relation to the state pension is not really relevant - NI is just another tax.

I added up how much NI I paid over the years I worked and it came to about £90,000 - how many years pension does that actually equate to ? not many and I was a high earner - most people will not have paid as much - the system relies on people a) not claiming  b) the costs being paid by the current working generation  

I did the same.  I worked solidly from 15 to 60, and was always an average earner.  Even at my peak I never quite reached supertax level.

Including the £3K I paid as voluntary Class 3s, my total was less than  £60K.  

Someone on the minimum wage all of their lives, or someone who mostly worked part time - ie, those most likely to need pension credit, housing benefit and other top ups - probably paid less than £20K for what could easily amount to over £200K of benefits.  

My sympathies on the loss of your mum, but this is the way all pension schemes work, not just the State.  The number crunchers work out that promising to continue to pay pensions to those who live to 90 or even 100 has to be funded by the contributions of those who, sadly, died early.

dunstonh

She worked all her life and paid NI contributions and tax, so it seems unfair/disgusting that the govt could just take that money away and my mum, who paid contributions to them all her life, never got to enjoy a penny of it.

You may wish to rethink that sentence.

She was born.  Cost of hospitals.
She was educated.  Cost of schools
She was protected.  Cost of defence.
We believe in protecting those that cannot look after themselves.  Cost of supporting the less advantaged.
She chose to have a child.  Cost of hospital
That child was educated.  Cost of schools.
Then you have all sorts of other things that need paying for.

Then there is cross subsidy.  If everyone got back an equal amount of state pension whether they lived or not, then the amount paid on the state pension for everyone would be significantly lower.

TELLIT01

My brother died 3 weeks before his 65th birthday which was retirement age at the time.  No state pension payout, but his company pension pot went into his estate.  Had he died just after his 65th birthday there would have been a couple of weeks state pension but probably nothing from company pension beyond the couple of weeks paid.  He was single and I had told him to take the option on his company pension which would give him the biggest monthly amount.  The pension pot which went to his estate was over £80k.  There are pro's and con's to all systems.

TELLIT01

SJE89 said:

But what happens to state pension?
She worked all her life and paid NI contributions and tax, so it seems unfair/disgusting that the govt could just take that money away and my mum, who paid contributions to them all her life, never got to enjoy a penny of it.

Sorry for your loss, but it comes across more that the family are disgusted that they aren't inheriting from the pension.

Flugelhorn

TELLIT01 said:

My brother died 3 weeks before his 65th birthday which was retirement age at the time.  No state pension payout, but his company pension pot went into his estate.  Had he died just after his 65th birthday there would have been a couple of weeks state pension but probably nothing from company pension beyond the couple of weeks paid.  He was single and I had told him to take the option on his company pension which would give him the biggest monthly amount.  The pension pot which went to his estate was over £80k.  There are pro's and con's to all systems.

some company pensions ensure that the equivalent of 5 years is paid if death occurs shortly after retirement (not all  I must say)

NannaH

It would be interesting to know how many people die within +/- a year of their SP age.
It must be a huge and nasty shock to those couples expecting 2x SP when one dies,  if that is their only retirement income. 

I know that if my husband dies before me,  I’ll have a good £5k per year less than he will if I die first due to only getting half his military pension.   We have life insurance of £175k  up to age 65 then £60k up to age 72 to soften the blow a bit should the worst happen.   My MiL died the year she retired at 60,  my FiL went on to 77 so got 12 years out of his annuity,  at least it was 8% when he bought it.