JohnWayne
More than 17,000 pensioners in the UK have boosted their state pension by £10,000 or more in a single year, according to new figures obtained through a Freedom of Information (FOI) request.
The data shows that surviving spouses and civil partners can inherit part of their late partner’s State Earnings Related Pension Scheme (SERPS), significantly increasing their annual income in retirement. Some recipients are doubling their pension to more than £22,000 per year.
How the Inheritance Rule Works
The inheritance boost comes from the Additional State Pension system, which includes SERPS. This allows a surviving spouse or civil partner to inherit a portion of their partner’s state pension entitlement.
| Detail | Amount/Information |
|---|---|
| Maximum Inheritance | At least 50% of certain state pension benefits |
| Current Maximum Inheritable | £11,356 per year |
| Potential Enhanced Pension | Up to £22,858 annually |
| People Benefiting (2023) | Over 2 million pensioners |
| Over £5,000 Boost | 541,760 pensioners |
| Over £10,000 Boost | 17,460 pensioners |
This inheritance option is particularly beneficial for those whose partner had built up a significant SERPS entitlement before they passed away.
Who Is Eligible to Inherit SERPS?
Eligibility depends on your and your partner’s date of birth, marital status, and state pension age:
- General Rule:
- You can inherit 50% of your spouse or civil partner’s additional state pension entitlement.
- Higher Inheritance Rates:
- If the man was born before 6 October 1945 and the woman before 6 July 1950, a higher percentage can be passed on.
- Restrictions:
- You cannot inherit if your late spouse remarried or entered a civil partnership before reaching state pension age.
These rules apply differently depending on whether the surviving partner reached state pension age before or after April 2016, when the new state pension system was introduced.
Why Some Pensioners Are Missing Out
Although more than 2 million pensioners receive an inherited SERPS payment, experts warn that thousands may be unaware they are entitled to claim.
Many do not realise that they can inherit from their partner’s state pension record, especially if they have already started receiving their own state pension.
Sarah Pennells, Consumer Finance Specialist at Royal London, explained:
“Understanding the rules is key to boosting your retirement income. The worry is that, while millions are claiming inherited SERPS, others could be missing out.”
Steps to Claim Your Inherited SERPS
If you believe you may be entitled:
- Contact the Pension Service – Ask for a review of your current state pension and check if you qualify for inherited SERPS.
- Have Documents Ready – You will need your late spouse’s National Insurance number and proof of your marriage or civil partnership.
- Request a Backdated Payment – If you were eligible in previous years but did not claim, you may be able to receive backdated payments.
The Importance of Checking Your Entitlement
With the cost of living rising, an extra £5,000 to £10,000 a year could make a significant difference to retirement finances.
In some cases, surviving spouses have doubled their state pension income, allowing them to meet essential expenses more comfortably.
The ability to boost your state pension by up to £10,000 through inherited SERPS is a little-known but valuable entitlement for surviving spouses and civil partners.
With over 17,000 pensioners already benefiting from boosts of £10,000 or more and over 2 million receiving some form of inheritance payment, checking your eligibility could make a substantial difference to your retirement income.
If you are unsure about your entitlement, contact the Pension Service as soon as possible — you may be owed not just higher payments in the future, but also backdated amounts you’ve missed.
FAQs
Can I inherit my spouse’s entire state pension?
No, you can only inherit part of the additional state pension (SERPS), typically up to 50%, although certain birth date conditions allow for more.
Does the new state pension system still allow inheritance?
Yes, but the rules are different for those reaching state pension age after April 2016, with generally smaller inheritance amounts.
How do I know if I’m entitled to inherited SERPS?
Contact the Pension Service and ask them to check your record against your late spouse’s contributions.