When a spouse or partner passes away, the last thing that anyone should need to worry about is their financial security. Yet, for many people, alongside the grief of losing a loved one, death can sadly also put you in uncertain territory when it comes to covering costs.
Knowing what income and benefits you may be eligible for can be crucial in navigating your finances after such a loss. Read on to find out more about what may be available.
Inheritance and the State Pension
Did you know that you can actually inherit your partner’s remaining state pension payments? Subject to the conditions that you were married or had formed a civil partnership, your partner had reached State Pension age before 6th April, had qualifying years to pass on to you, and you were not receiving £169.50 from your own State Pension, you may be able to claim part or all of their State Pension payments.
Claiming your partner’s private pension
If your partner is of a state pension age, then they are likely to have also accumulated one or more private workplace pensions from which they have been receiving payments. Should there be any remaining funds in these pensions, you may be able to inherit some of these payments – this is dependent on the rules of the scheme your partner’s pension is in and the death benefits associated with their plan. To find out if you can claim the remaining payments of the pension, you would need to speak to the provider directly.
Widow’s pension
Also known as Bereavement Support Payment (BSP), widow’s pensions are designed to offer support in financial hardships for individuals who have lost their partner. BSP is not means tested, meaning that how much you earn or the amount of savings you have does not affect how much you’ve received. The only criteria needed to be met is that your partner must have died under the State Pension age, have been married or in a civil partnership with you, died as a result of a disease or accident at work, or have paid a certain amount of Class 1 or Class 2 National Insurance contributions.
In order to claim this, you would need to submit a claim within 21 months following the death of your partner. The amount you receive is dependent on when you reach State Pension age, your relationship to the person who died, in addition to when you make your claim – so make sure you submit your claim as soon as possible!
Financial advice
Perhaps one of the best ways to ensure you and your partner are prepared for whatever the future holds is to seek financial advice. At My Pension Expert, our team of financial advisers can help you exhaust all avenues to make sure your pension, or your partner’s pension, is in a place where it can be accessed should the worst occur. Rather than having an educated guess at putting plans in place, financial advice steers you to the correct course and puts you at ease, knowing you have done everything to provide security for your partner in the future.
To find out more, schedule a call today.