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Over half a million people are enjoying a boost to their state pension worth more than £5,000 per year thanks to inheriting another person's payments.

DWP data sourced by found that in the 2023/24 tax year, over two million pensioners (approximately 2,027,440 people) received a payment from an inherited state earnings-related pension scheme (Serps), part of the old state pension system.

The figures show that around 541,760 pensioners were receiving more than £5,000 annually in inherited Serps payments, including 17,460 who received over £10,000.

If a spouse or civil partner passes away, the surviving partner may be eligible to inherit part of their additional state pension. This would be paid on top of the survivor's own state ension when they reach the current retirement age of 66.

Surviving spouses and civil partners could potentially inherit up to an annual maximum of approximately £11,356.28 (£218.39 per week) for the 2024/25 tax year.

For the 2023/24 tax year, the weekly maximum amount of inherited Serps was slightly lower, at £204.68. The DWP has disclosed the figures from its quarterly statistical survey, revealing that the average annual inherited Serps payment for 2023/24 stands at £3,377, as reported by Royal London.

However, you could get an even bigger boost to your state pesion through the scheme, with the potential for an extra £20,000 annually.

Looking over the figures, Sarah Pennells, consumer finance expert at Royal London, said: "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. Understanding the rules is key to boosting your retirement income."

A new state pension system came in from April 2016, with simplified payments for those retiring after this data. Ms Pennells further explained: "As we continue to adapt to the new system introduced in 2016, which focuses on individual entitlements, understanding the legacy of Serps and its relevance for thousands of retirees remains crucial."

Royal London urges those uncertain about their inherited Serps rights to get in touch with for more information.

What happens to state pension payments after a person dies

In the event of a death, it's important to know that state pension claims don't automatically cease. The family need to notify the Pension Service to halt payments.

To report a death and stop the pension, contact the Pension Service helpline at 0800 731 0469. A person may be eligible for additional payments derived from their late spouse's or civil partner's

Your eligibility hinges on the deceased person's National Insurance contributions and the date when they were of age to receive the state pension. If you're yet to reach state pension age, you may also be able to get bereavement benefits.

How to inherit a basic state pension

In cases where a spouse or civil partner reached age before April 6, 2016, the Government website advises contacting the Pension Service to find out what you can claim.

You may be able to boost your basic by applying the qualifying years of a deceased partner, particularly if you don't already receive the maximum amount.

For those reaching age on or after April 6, 2016, the Government website has to check your partner's NI record and whether there are any inheritable amounts.

Single people, divorcees or those whose civil partnership has been dissolved may find that their estate is entitled to some portion of a deceased person's basic .

This applies if the individual passed away after reaching age, and only if they hadn't claimed their state pension. In this case, the estate could lay a claim to as much as three months of the basic .

Other cases where you may be able to inherit part of a person's state pension

According to guidance on GOV.UK, anyone who has topped up their may enable their spouse or civil partner to inherit some or all of the top-up.

You may also be able to inherit an additional payment on top of your new if you are widowed. However, should an individual remarry or enter into a new civil partnership before reaching age, they will not be eligible to inherit anything.

In cases where a marriage or civil partnership began before April 6, 2016 and one of the following circumstances applies, then a person may be able to inherit part of their deceased partner's additional state pension. These are:

• The deceased partner reached state pension age before April 6, 2016
• They died before April 6, 2016 but would have reached state pension age on or after that date.

You can inherit half of your partner's protected payment if your marriage or civil partnership with them began before April 6, 2016, and:

• Their state pension age is on or after April 6, 2016
• They died on or after April 6, 2016
• This payment will be made with the state pension.

A person may also inherit part of all of their partner's extra state pension or lump sum if:

• They died while they were deferring their state pension or had started claiming it after deferring
• They reached state pension age before April 6, 2016
• They were married or in the civil partnership when they died.

You can check how much state pension you are on track to receive using the state pension forecast tool .

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