Inheritance of protected payment
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Sterlingtimes
Posts: 2,403 Forumite
I read this at the Pension Advisory Service website, but I am unclear on how this works.
"When both partners reach State Pension age after 6 April 2016, a surviving spouse or civil partner will be able to inherit 50% of any protected payment that exists."
I reach my State Pensionable Age in 2022 and my wife reaches her State Pensionable Age in 2035. My protected payment is currently £30 per week. So my wife would inherit half, i.e. £15 per week.
Let's say that I die in 2023, does my wife immediately inherit my £15 per week from the date of my death until her death, or does my wife have to await her State Pensionable Age before she inherits my £15 per week?
Is the £15 index linked?
"When both partners reach State Pension age after 6 April 2016, a surviving spouse or civil partner will be able to inherit 50% of any protected payment that exists."
I reach my State Pensionable Age in 2022 and my wife reaches her State Pensionable Age in 2035. My protected payment is currently £30 per week. So my wife would inherit half, i.e. £15 per week.
Let's say that I die in 2023, does my wife immediately inherit my £15 per week from the date of my death until her death, or does my wife have to await her State Pensionable Age before she inherits my £15 per week?
Is the £15 index linked?
I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".
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Comments
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She will have to wait until her state pension age.
https://www.gov.uk/new-state-pension/inheriting-or-increasing-state-pension-from-a-spouse-or-civil-partnerIt will be paid with your State Pension.0 -
She will have to wait until her state pension age.
https://www.gov.uk/new-state-pension/inheriting-or-increasing-state-pension-from-a-spouse-or-civil-partner
Thank you, molerat. I rather thought that that would be the case.
To the extent that I did opt out of SERPS and S2P, that seems to have been a good decision in retrospect. My wife will inherit 100% of the benefit of that tax-free provided that I die before the age of 75. The 50% after taxed becomes 40%. These rules do not seem to be equitable.I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".0 -
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs19_state_pension_fcs.pdf
8.2 Inheriting a protected payment
You can inherit half of a partner’s protected payment once you start
claiming your own State Pension if your marriage or civil partnership
began before 6 April 2016 and both the following apply:
they reached, or would have reached, State Pension age on or after 6
April 2016
they died on or after 6 April 2016.0 -
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs19_state_pension_fcs.pdf
8.2 Inheriting a protected payment
You can inherit half of a partner’s protected payment once you start
claiming your own State Pension if your marriage or civil partnership
began before 6 April 2016 and both the following apply:
they reached, or would have reached, State Pension age on or after 6
April 2016
they died on or after 6 April 2016.
Thank you, xylophone, this is far clearer.I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".0
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