Pension Death Before Retirement

Who Gets Your Pension - Death Before Retirement

It is important to look at a pension fund from every possible angle and this unfortunately includes who will receive your retirement pension should you die before you reach retirement age.

The Retirement Pension

A Retirement Pension is a pension benefit for people of state pension age, at present this is set at 65, which is based on the national insurance contributions they have made during the course of their working life. You have to make a claim in order to receive the state retirement pension. In fact, you can continue working and receive the retirement pension if you are over the age of 65 and have made enough contributions. You can also put off drawing your retirement pension and then either take it as a lump sum or take it at an increased weekly rate. It should also be noted that at the moment women can retire at the age of 60 and receive a State Pension. However, this is all set to change. Between 2010 and 2020 the state pension age will change so that it is 65 for both men and women. This will not affect any women born before 1950. If you die before you retire your surviving spouse may be able to claim some of the national insurance contributions you have made.

The Amount Of Retirement Pension

The amount of retirement pension you will receive from the state is dependant on how many national insurance contributions you have made and may include increases for your husband or wife. You may also be entitled to an additional pension, a graduated pension or an extra pension in addition to the basic state retirement pension you receive. You can contact the Pensions Service to receive a Pensions Forecast at any time which will then give you an indication as to how much retirement pension you can expect to receive.

The Retirement Pension On Death Before retirement

If you die before you retire your surviving spouse may be able to claim some of the national insurance contributions you have made. They may also be able to claim up to 100% of your SERPS or Additional State Pension. In these circumstances the surviving spouse would need to speak to the Pensions Service regarding claiming on your national insurance contributions. It should also be noted that as of the beginning of 2006 partners who are civilly registered may also be able to claim on their partner's national insurance contributions.