Millions of retirees urged to check inheritance rule to bolster pension savings by £5,000

More than two million pensioners across the UK received a significant financial boost last year through inherited state pension schemes.Royal London has revealed that in the 2023/24 tax year, approximately 2,027,440 pensioners benefited from payments from an inherited state earnings-related pension scheme (Serps).The data shows that over half a million pensioners received more than £5,000 annually from these inherited payments.This substantial income supplement comes as HM Revenue and Customs (HMRC) figures show inheritance tax receipts reached £8.2billion in 2024-25.According to Royal London's data, obtained through a freedom of information request, 541,760 pensioners received more than £5,000 a year in inherited Serps payments.This includes 17,460 individuals who received over £10,000 annually. For the current tax year (2024/25), surviving spouses and civil partners can potentially inherit up to £11,356.28 annually, equivalent to £218.39 per week.Notably, this represents an increase from the 2023/24 tax year, when the weekly maximum amount came to an estimated £204.68.Royal London's consumer finance specialist Sarah Pennells said: "This data shows how much of a difference inheriting a Serps pension from your husband, wife or civil partner can make.Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk."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."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."Surviving spouses and civil partners could be in line inherit up to an yearly maximum of around £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. These pension figures were released by the Department for Work and Pensions (DWP) and taken from its quarterly statistical inquiry. The latest data comes after a warning to Britons aged between 55 and 64 over the state pension options many people are unaware of.LATEST DEVELOPMENTS:Bank of England set to cut interest rates – what it means for your savings, pension and mortgageHMRC repays £44m in overpaid tax as pensioners hit with unexpected billsDWP overhaul set to 'reward' pensioners with £1,000 savings boost: 'Great news!' According to a study carried out conducted by Just Group, one in four people aged 55 to 64 (25 per cent) are unaware they have the option to defer their State Pension.As it stands, the state pension age is sitting at 66 for both men and women. However, under existing government plans, from the Labour Party government, this will rise to 67 between 2026 and 2028. For those entitled to the new state pension, which is available to individuals who reached retirement age after April 6, 2016, deferring payments can lead to a meaningful financial boost.