UK Pension After Death: Practical Steps and Documents (2025-2026)

Losing a loved one is an emotionally taxing journey, and the administrative burden that follows can often feel overwhelming. One of the most critical, yet complex, aspects of settling an estate is managing a UK pension after death. Whether it is the State Pension or a private workplace scheme, understanding your rights as a survivor and the practical steps required is essential for long-term financial stability.

In the 2025–2026 financial year, the landscape of UK pensions has evolved. With rising State Pension rates and looming changes to how pensions are taxed upon death, being proactive is more important than ever. This guide provides a clear, compassionate roadmap to navigating these waters, ensuring you claim what you are entitled to while avoiding common tax traps.

Time Required

3-6 months

Difficulty

High

Number of Documents

6-10 certified death certificates recommended.

Understanding the UK State Pension After Death

The State Pension is a foundational part of retirement income for over 13 million people in the UK. When a pensioner passes away, the rules regarding what happens to those payments depend on which "system" they were under and their marital status.

The New vs. Basic State Pension

The rules changed significantly on April 6, 2016. If your spouse or civil partner reached State Pension age before this date, they were on the "Basic State Pension." If they reached it after, they were on the "New State Pension."

As of April 2025, the rates have been updated:

New State Pension: £230.25 per week.
Basic State Pension: £176.45 per week.

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Note: The "Triple Lock" remains in effect, with a projected 4.8% rise expected for April 2026, which would bring the New State Pension to approximately £241.30 per week.

Can You Inherit a State Pension?

Inheritance is not automatic for everyone. Generally, you can only inherit a portion of a State Pension if you are a surviving spouse or civil partner.

If they reached pension age before April 2016: You may be able to claim a portion of their "Additional State Pension" (also known as SERPS).
If they reached pension age after April 2016: You might inherit a "Protected Payment" if they had built up a large enough entitlement, but you usually need to have reached State Pension age yourself to receive it.

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Warning: If you remarry or enter a new civil partnership before you reach State Pension age, you may lose the right to inherit any of your late partner's State Pension.

Immediate Practical Steps: Notification

The very first administrative task regarding a UK pension after death is notifying the relevant authorities. Delaying this can result in the Department for Work and Pensions (DWP) paying out funds that they will later demand back, adding unnecessary stress to a grieving family.

Using the "Tell Us Once" Service

The "Tell Us Once" service is a vital tool. When you register a death, the registrar will usually provide you with a unique reference number for this service. It allows you to report the death to most government departments in one go, including:

The DWP (for State Pension and benefits).
HMRC (for tax affairs).
The DVLA and Passport Office.
Public sector pension schemes (NHS, Teachers, etc.).

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Tip: While "Tell Us Once" handles public sector pensions, it does not notify private providers like Aviva, NEST, or Prudential. You must contact these companies individually.

Ordering Death Certificates

Most pension providers—both State and private—will require an original or a certified copy of the death certificate. In 2025, the cost per copy is typically between £11.00 and £12.50.

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Tip: Experts recommend ordering 6–10 certified copies immediately. Using photocopies is rarely accepted by financial institutions, and ordering more later can be a slow process.

Private and Workplace Pensions: The "Age 75" Rule

Unlike the State Pension, private pensions (defined contribution schemes) are often seen as a pot of money that can be passed down. However, the tax you pay on this "pot" is determined by a single factor: the age of the deceased at the time of their death.

Death Before Age 75

If the deceased passed away before their 75th birthday, the beneficiaries can usually receive the remaining pension pot tax-free. This applies whether the money is taken as a lump sum or kept in a drawdown account.

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Success: To maintain this tax-free status, the pension provider must be notified, and the funds must be "designated" to the beneficiary within two years of the death.

Death At or After Age 75

If the deceased was 75 or older, the tax-free status vanishes. Any money taken from the pension pot will be taxed as income for the beneficiary. If you take a large lump sum, it could push you into a higher tax bracket (40% or 45%).

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Warning: Taking a £100,000 lump sum from a pension inherited from a 76-year-old could result in a massive, immediate tax bill. It is often more tax-efficient to draw the money out slowly over several years.

The "Expression of Wish" Form

A common misconception is that your Will dictates who gets your pension. In reality, pensions are held in trust. The pension trustees have the final say, and they primarily look at the Expression of Wish (or Nomination) form filed with the provider.

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Tip: Ensure your own Expression of Wish forms are updated annually. If you have divorced but never updated your form, your pension could legally go to an ex-partner, regardless of what your Will says.

The 2027 Inheritance Tax "Pension Trap"

For years, pensions have been a primary tool for inheritance tax (IHT) planning because they sat outside the deceased's "estate." However, the Autumn Budget 2024 introduced a seismic shift.

Starting April 6, 2027, unused pension funds and death benefits will be included in the value of the estate for IHT purposes. This means that if the total estate (including the pension) exceeds the IHT thresholds, a 40% tax may apply to the pension pot before it even reaches the beneficiaries.

Key Updates for 2025-2026

Exemptions: As of July 2025, the government has clarified that "Death in Service" benefits and certain dependants' scheme pensions will remain exempt from IHT.
Responsibility: Unlike current rules where pension administrators handle the tax, from 2027, the Personal Representatives (Executors) will be responsible for reporting and paying IHT on pension assets.

If you are managing an estate with a significant pension pot, you may wish to read our guide on Financial Planning After Spouse Death: Tools, Checklists, and Essential Guides to understand how these assets interact with your overall financial health.

Bereavement Support Payment (BSP)

If you were under the State Pension age when your partner died, you might be eligible for the Bereavement Support Payment. This is a non-taxable benefit designed to help with the immediate costs of losing a partner.

Rate Type	Lump Sum	Monthly Payment (18 months)	Total Value
Higher Rate (with children)	£3,500	£350	£9,800
Standard Rate	£2,500	£100	£4,300

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Warning: You must claim within 3 months of the death to get the full lump sum and all 18 monthly payments. If you wait longer than 21 months, you will receive nothing at all.

Step-by-Step Checklist for Managing a UK Pension After Death

Locate the Documents: Find the deceased’s National Insurance number and any private pension policy numbers.
Register the Death: Obtain at least 6-10 certified death certificates.
Use "Tell Us Once": Report the death to the DWP to stop State Pension payments.
Contact Private Providers: Reach out to every workplace or private pension provider.
Check the Expression of Wish: Ask the provider who the nominated beneficiary is.
Assess Tax Liability: Determine if the deceased was over or under 75.
Claim BSP: If eligible, apply for the Bereavement Support Payment immediately.
Search for Lost Pensions: Use the Pensions Dashboard (fully launching by October 2026) or the government’s Pension Tracing Service to find forgotten pots.

Real-World Examples

Example 1: The "Under 75" Advantage

Sarah’s husband, Mark, passed away at age 68. Mark had a private pension worth £150,000. Because Mark died before age 75, Sarah was able to move the entire £150,000 into a beneficiary drawdown account. She can now withdraw this money whenever she needs it, completely tax-free.

Example 2: The "Over 75" Tax Trap

James’s father died at age 82, leaving a £50,000 pension pot. James decided to take the full amount as a lump sum to pay off his mortgage. However, because his father was over 75, the £50,000 was added to James’s existing salary of £45,000. This pushed James into the 40% tax bracket, and he lost nearly £15,000 of the inheritance to income tax.

Example 3: The State Pension "Protected Payment"

Elena’s husband, David, reached State Pension age in 2018 (New State Pension). He had a significant "Protected Payment" due to his high NI contributions before 2016. When David died, Elena was able to inherit 50% of that Protected Payment, increasing her weekly income for life.

Common Mistakes to Avoid

Assuming the Will Covers Everything: As mentioned, pensions bypass the Will. Always check the nomination forms.
Delaying DWP Notification: If the State Pension continues to be paid into a joint account after death, the DWP will reclaim it. This can cause the account to go into an unarranged overdraft if you have already spent the money.
Ignoring Small "Frozen" Pensions: Many people have small pensions from jobs they held decades ago. Even a pot of £2,000 can help with funeral costs. For help accessing funds for immediate needs, see Accessing Deceased Bank Account (Practical Steps and Documents).
Forgetting the 2-Year Rule: For tax-free status on "under 75" deaths, the pension must be settled or designated within two years. Don't leave the paperwork sitting in a drawer.

Frequently Asked Questions

Can I inherit my partner's State Pension if we weren't married?

No. Under current UK law, you generally must have been married or in a civil partnership to inherit State Pension rights. Cohabiting partners do not have the same inheritance rights for State Pensions, though they may still be named as beneficiaries on private pensions.

What happens if I can't find the pension paperwork?

You can use the government's free Pension Tracing Service. Additionally, by October 31, 2026, the new "Pensions Dashboards" will be mandatory for all schemes, making it much easier to see all of a deceased relative's holdings in one digital space.

Is a survivor's pension paid for life?

For private "Defined Benefit" (Final Salary) schemes, a survivor's pension is often paid for the rest of your life, though it is usually 50% to 66% of what the deceased was receiving. For "Defined Contribution" pots, the money lasts only until the pot is empty.

Do I have to pay back State Pension paid after death?

Yes. The State Pension is paid in arrears, but entitlement stops on the exact day of death. Any payment covering a period after that date must be returned to the DWP.

How does "Death in Service" work?

If the deceased was still working, their employer might pay out a "Death in Service" benefit, often 2x to 4x their annual salary. This is usually paid into a trust and, as of 2025, remains exempt from Inheritance Tax.

Conclusion

Managing a UK pension after death is a marathon, not a sprint. While the initial notifications via "Tell Us Once" are urgent, the decisions regarding private pension pots and tax planning require careful thought and, often, professional advice.

With the significant IHT changes arriving in 2027, the way we view pensions as "inheritance vehicles" is shifting. Whether you are navigating the Claiming Life Insurance process or trying to understand how to apply for Funeral Expenses Payment, remember that you do not have to do this alone. Organizations like MoneyHelper and the Citizens Advice Bureau offer free guidance to help you through this transition.

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Success: By handling these steps correctly in the first three months, you protect your financial future and ensure your loved one's legacy is preserved as they intended.

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