Thousands of pensioners in the UK are receiving over £10,000 per year from inherited State Earnings-Related Pension Scheme (Serps) payments, according to newly released data. A Freedom of Information (FOI) request by Royal London has revealed that more than two million retirees are benefiting from this additional retirement income.
How Many Pensioners Benefit from Inherited Serps?
The Royal London report, based on data from the Department for Work and Pensions (DWP) for the 2023/24 tax year, highlights:
- 2,027,440 pensioners receive inherited Serps payments.
- 541,760 pensioners earn more than £5,000 annually from these payments.
- 17,460 pensioners receive over £10,000 per year in inherited Serps.
The average annual inherited Serps payment is £3,377, providing a significant boost to many retirees’ state pensions.
What is the Inherited Serps Payment?
Inherited Serps payments come from the old state pension system and allow surviving spouses and civil partners to inherit a portion of their deceased partner’s additional state pension.
For many retirees, these payments act as an important financial supplement, increasing their total state pension income to over £20,000 per year in some cases.
How Much Can Pensioners Inherit in 2024/25?
For the 2024/25 tax year, eligible individuals may inherit up to £11,356.28 annually (£218.39 per week).
In comparison, the maximum amount for the 2023/24 tax year was £204.68 per week, showing a slight increase in entitlements.
Who is Eligible for Inherited Serps Payments?
Surviving spouses and civil partners may qualify for an inherited Serps pension if:
- Their late partner had built up additional state pension under the old Serps system.
- They have reached state pension age and are receiving their own state pension.
- They meet the eligibility criteria set by the DWP.
Understanding eligibility rules is essential to ensure pensioners do not miss out on these payments.
Concerns About Pensioners Missing Out
Despite the two million pensioners already claiming inherited Serps, experts warn that some retirees may be unaware of their entitlement.
Sarah Pennells, consumer finance specialist at Royal London, stated:
“This data shows how much of a difference inheriting a Serps pension from your husband, wife, or civil partner can make.”
“The worry is that, while more than two million people are claiming inherited Serps, others could be missing out.”
Pensioners who believe they may be eligible should check their state pension records and seek guidance from the DWP or financial advisors.
The inherited Serps pension provides a valuable financial boost to thousands of pensioners, with some receiving over £10,000 per year. However, many retirees may be missing out due to a lack of awareness. Understanding eligibility rules and checking entitlement could help more pensioners secure additional income in retirement.
FAQ’s
What is an inherited Serps payment?
An inherited Serps payment is additional pension income given to surviving spouses or civil partners of deceased individuals who built up extra state pension under the old Serps system.
How many pensioners receive inherited Serps payments?
According to DWP data, over 2 million pensioners receive inherited Serps payments, with some getting over £10,000 per year.
How much can pensioners inherit from Serps in 2024/25?
For the 2024/25 tax year, eligible individuals can inherit up to £11,356.28 annually (£218.39 per week) from Serps payments.
Who is eligible to inherit a Serps pension?
Surviving spouses and civil partners may qualify if their late partner had additional state pension entitlements under Serps and they have reached state pension age.
How can I check if I am eligible for inherited Serps payments?
You can check your state pension records through the UK government’s pension service or contact the DWP for details on eligibility and claims.
Are some pensioners missing out on Serps payments?
Yes, experts warn that some eligible pensioners may be unaware of their entitlement. Checking with the DWP can help ensure they receive their full benefits.
