Why isn’t this wife getting her husband’s pension?

[Twospaniels]

Wife is 60, husband is 67. They started getting his private pension 2 yrs ago. He has just died unexpectedly and the wife will not get the remainder of his pension.

I thought that she would receive it as his widow.

This is very worrying. We are checking our pensions to see if this is usual.

It will depend on the rules of the pension scheme, what do they say about a window's pension? If the rules have been broken contact the trustees

Not all pension schemes are the same

Same thing happened with my grandparents, was a private pension.
My work pension would pay out a smaller widows pension.

For a private pension, I think the pot becomes part of the estate rather than the monthly pension continuing. If the estate is going to the wife, she can then invest to provide her own income.

Some private pensions - you can nominate who you leave it to, so could the husband have left it to someone else?

Yes this can be normal depending on the type of pension. DFIL had two private pensions - one paid out 50% to DMIL when he died, one paid nothing.

For most private pensions, you can choose to either receive a lower amount from the start, and have a smaller spouse pension, or get a higher amount but no spousal pension. It sounds as though he chose the latter.

As others had said a widows pension do not always exist. Whether their is a pot for the widow also depends on the terms of the pension fund / whether and how it has been drawn down. It is very important to check this - for example dh occupational pension has no surviver rights.

I’m afraid I don’t know any further details than as I put in my original post ☹️

Such a worry at a terrible time for her.

When you say a private pension, had an annuity been purchased? These can be either single life (ie no spouse pension) or joint life (where a spouse pension would be payable). I’d an annuity had been purchased then the remaining value would be lost on an early death, rather than retained in the estate which would be the case if the husband had been drawing down from the total capital.

If it was a personal pension amd he's taken it as an annuity, it will depend on the options chosen at retirement. If he didn't choose a spouses pension or a minimum guarantee period, then its correct she will get nothing. Often people see the higher annual pension you can get by ditching the spouse's pension and take a gamble that their spouse will die first (or they don't care if they leave them pension or not). If its a short marriage or he married her after starting his pension that could also be the reason.

If its in drawdown (rather than annuity) then I believe it would either go to his named beneficiary or to his estate, not sure which.

Definitely depends on the rules of the pension, and possibly he could have opted for no spouse pension, for higher single pension payments

Private pension/annuity schemes had options. If the husband opted to make it a joint scheme (to continue paying to his widow after death) then either the contributions would have been higher, or the pension smaller.

My friend's husband's pension stopped on his death, she gets nothing. And, as with many of these schemes, there was no 'pot'. @Twospaniels, you need to know what type of pension/annuity scheme it was.

@Twospaniels

I’m afraid I don’t know any further details than as I put in my original post ☹️

Such a worry at a terrible time for her.

It should be possible to find out from the pension company, if the husband was 67 I'm guessing he retired relatively recently so there shouldn't be any issues with lost paperwork or old records

Does the widow have any of his paperwork?

He would have had to be either insane or in very poor health to even consider an annuity from a pension ‘pot’ at 67, the rates are shocking.
I bet a lot of people opt for the higher payment single life pension too without realising the consequences for a spouse.
Most DB (Teachers/LGPS etc.) schemes have at least half-pension payments to spouses.
For pensions in drawdown, the pot always goes, tax free, ( until the age of 75) to the nominated beneficiary.