The Great Hunt: Getting ready for retirement

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  • Thanks for the reply jem16....at least I seem correct with most of my assumptions...it's not about living on less to avoid tax.
    I have a few health problems ( hence early retirement ) and am realistic that I may never be able to do paid work again after i retire....it was more about if I get to the age the state pension kicks in it would give me an income in total of about £14400 a yr....above £10000=£4400 ...tax that at 20% =880,take that off £14400=approx £13500 yr = £1012 mth...so Yes it would be ( if I get there) more than £833
    If I get to state pension age I will be much better off than in the years before it.....those yrs are what I have to plan for..
  • gloriouslyhappygloriouslyhappy Forumite
    526 Posts
    Tenth Anniversary 500 Posts Name Dropper
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    My advice is, just don't sign up for too much, you will be amazed at how quickly your diary is filled up by well-meaning people trying to help you fill your time. I have to book out days just for me to do nothing in, otherwise I'd be running here there and everywhere. Don't be afraid to turn down invitations for volunteer opportunities, parties where you're expected to arrive early, stay late and help with the prep and clean up as you've 'nothing else to do' now you're retired, baby-sitting and diverse other 'experiences' people would like to wish on you and your supposed 'free time'.

    Because your time isn't free, you've worked all your life for this, now be brave and enjoy it the way you want to. Be busy if that's really what you want, but keep in mind, it's your time to smell the roses, so relax and enjoy it, and the invitations and opportunities will still keep coming even if you do turn down a few..

    Yes, I'm cash-poor but time-rich, and am able to make a lower income go further using tips from lovely websites like this one, taking advantage of senior discounts and early-bird offers, plus doing the odd bit of crafting and boot fairs. And you know what? My lifestyle hasn't changed that much, except now I do things to my deadlines! So go enjoy your new relaxed life, after all, you've earned it!
  • Does everyone who works have to pay NI ?

    If I retire before state pension age,take my company pension....go back to work few hrs a week but earn less than £10000 a yr from salary and interest from investments and already have enough yrs "in" to earn a full state pension.....do you still pay NI on salary ?
  • zygurat789zygurat789 Forumite
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    Does everyone who works have to pay NI ?

    If I retire before state pension age,take my company pension....go back to work few hrs a week but earn less than £10000 a yr from salary and interest from investments and already have enough yrs "in" to earn a full state pension.....do you still pay NI on salary ?

    The answer to your question is no You don't need to pay Ni you have to pay it if you are liable.
    Depending on which class of NI you are under there are minimum income limits,
    since NI is an employment tax it is levied on each employment separately or on self employment. Anyone over state retirement age does not have to pay NI but their employer does.
    The current lower limit for NI class 1 is £7,956 pa
    The only thing that is constant is change.
  • edited 12 August 2014 at 7:39PM
    Nationwide8Nationwide8 Forumite
    362 Posts
    Hung up my suit!
    edited 12 August 2014 at 7:39PM
    zygurat789 wrote: »
    The answer to your question is no You don't need to pay Ni you have to pay it if you are liable.
    Depending on which class of NI you are under there are minimum income limits,
    since NI is an employment tax it is levied on each employment separately or on self employment. Anyone over state retirement age does not have to pay NI but their employer does.
    The current lower limit for NI class 1 is £7,956 pa

    Thanks....so you have to pay some level of NI on your earnings if your pension and earnings together are above £7,956 ?
  • Another thought...if I intend to live off a company pension and investments which would total under £10,000 per annum AND started taking my pension in a separate tax year from any earnings before it....do you get taxed on your pension regardless and then have to claim it back later ?....or not taxed on pension until/if I went over £10,000 income.. in other words do the tax office tax you first and ask questions later ?
  • mgdavidmgdavid Forumite
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    HMRC give your tax code to the pensions company. They apply the tax code and deduct any tax due, in the same way that an employer does. If you are in receipt of several pensions it can get complicated.
    The questions that get the best answers are the questions that give most detail....
  • amibovveredamibovvered Forumite
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    Thanks....so you have to pay some level of NI on your earnings if your pension and earnings together are above £7,956 ?

    You do not pay NI on pensions so only your earnings need to be taken into consideration.
    I want my sun-drenched, wind-swept Ingrid Bergman kiss, Not in the next life, I want it in this, I want it in this

    Use your imagination, or you can borrow mine!
  • zygurat789zygurat789 Forumite
    4.3K Posts
    Part of the Furniture Combo Breaker
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    Thanks....so you have to pay some level of NI on your earnings if your pension and earnings together are above £7,956 ?

    NI is an "employment tax" being in receipt of a pension does not make you employed.
    The only thing that is constant is change.
  • AND if you have concessionary travel card, USE IT !


    .

    I wonder if it is discrimination that some councils give free bus passes to those over 60 and others don't. I was really looking forward to my free travel when I turned 60 last April, even if I can't retire till I am 65 1/2 but found my local council only issue it on actual State pension age.
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