DWP pension error needing action now could cost you £40k in retirement

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DWP pension error needing action now could cost you £40k in retirement
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DWP has admitted a new error in the state pension system has been identified

Widows and widowers are being encouraged to review their state pension entitlement following the discovery of a new error by the Department for Work and Pensions .

They should have been informed that they could potentially inherit at least 50% of any "additional state pension" accumulated by the late spouse, plus 50 per cent of any "graduated retirement benefit". However, Sir Steve, now a partner at LCP, stated that in the four cases brought to his attention, all four individuals were incorrectly told in writing or over the phone by the DWP that they were not entitled to anything extra.

As per the latest figures released on March 31, 2024, over £280 million in arrears has been compensated to approximately 23,000 individuals who did not receive their correct inherited state pensions after losing their spouse or civil partner. The DWP projects that by the end of the correction process, the total reimbursement may exceed £650 million for an estimated 50,000 widows and widowers.

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