Parents pensions

[Lara96]

My parents are in their late seventies and I am worried about what will happen when one of them dies and about how the other will cope financially. Would they be entitled to part of a pension when one them dies. They only have state pensions.

No your state pension finishes when you die.

Is downsizing an option? To release some equity

It must be a worry for a great number of people, especially those who own rather than rent their home.
Equity release is pretty much the only answer for more income, the older you are the bigger % you can take but the max is 60% iirc.
Whole life cover is available but the cost at 70+ is likely out of reach for most people.
I’ll definitely be worse off than DH will as I would lose his State pension and half his military pension. Thankfully we both have Sipps and would inherit the other’s. We have life insurance to age 75, more good luck than prior planning as our original life ins ran out at 50.

Depends - one of them might be able to inherit part of the other’s State pension, or increase their own, but it depends on when they retired, exactly what their State pension(s) consist of and whether one or both gets full State pensions already.

Thanks I am going to look in to this as it’s been worrying me.

My parents live in assisted living flat that is attached to a care home. They don’t live in the care side and they pay rent and I am just worried what will happen when one of them dies. I couldn’t even take the surviving parent in as I live in a one bedroom flat and there is no room. It’s really stressing me out.

If 1 pension can't cover it then housing benefit may be an option, or if care needs are sufficient then local authority care funding.

You cannot be made to take them in.

If they really do have just state pension and they will probably be on the old style one they may be entitled to pension credit.

Are you sure they just have state pensions? It's unusual at their ages for at least 1 of them not to have a private pension unless they didn't work

That Is not true if your parents have significant SERPS contributions on their pensions. This would be a pension before 2016. A percentage of the SERPS would be payable to the other

www.gov.uk/additional-state-pension/inheriting

Definitely look into pension credit which if awarded means no council tax is payable ( you do have to apply) also housing benefit for help with the rent - in fact it would be worth them investigating this now. Plus if either have care needs attendance allowance. Ask at your local advice service citizens advice or age uk.

As well as pension credit or help with the cost of rent, they might be entitled to attendance allowance.

They should do a benefit check now and obviously repeat every time their situation changes eg if one of them dies or even if their rent increases.

Yes, I get it from my late husband’s state pension. He died in 2023. I get the full rate State Pension, as I am in the new style one.

My mum is a bit older (80s) but she inherited ddads serps contributions so it's a possibility.
Also, have a look at the entitled to or turn to us website and run through the scenario of one of your parent on their own. If they don't have masses of savings and rent, they are likely to get enough benefits to cover a basic standard of living.
It might be worth doing that with their situation now, check they are getting what they are entitled to.