Todays changes, does it include Forces pensions?

atush

!!!!!! wrote: »

Just from pure interest, can you elaborate on your thankfulness that it is not possible.

I have been a Forces 'pensioner' for the last 10 years and it makes a nice safety net when work is a bit slack although i resent the government taking 20% of it in tax. Wouldn't even think of cashing mine in

I can't begin to say how silly this comment is?

"nice safety net when work is slack" thanks normal joe doesn't have one. Esp one that pays out before age 55 as older forces pensions did. Yet you are still well enough to work. Good on you.

You resent govt taking Basic rate tax?????? when you are earning more than 10,600? Do you know how many dont? Do you resent it being raised to 11K?

The only reason your pension is taxed, is because you are double dipping (ie claiming your DB public service pension but still working).

If you had actually retired, then you would not be paying tax (unless maybe an officer?)

molerat

atush wrote: »

............
The only reason your pension is taxed, is because you are double dipping (ie claiming your DB public service pension but still working).

If you had actually retired, then you would not be paying tax (unless maybe an officer?)

I must be doing something wrong then

atush

Not if you were a full time paid up member. I assume you remember but just in case

I also have a small(but decent enough) Forces pension.

this lead me to believe a short time member? deferred?

fordcapri2000

I am also now wondering for anyone over 55 or even approaching 55 and looking to find finance, would the Banks/lenders now see a large pension pot as collateral.

Seeing as though it is now very accessible, no different to equity in property or a few KG of gold locked away in a vault.

System

atush wrote: »

I can't begin to say how silly this comment is?

"nice safety net when work is slack" thanks normal joe doesn't have one. Esp one that pays out before age 55 as older forces pensions did. Yet you are still well enough to work. Good on you. A normal joe if he had any sense would have been paying into a pension from the start of his working career. He would then be in the same position I am in now

You resent govt taking Basic rate tax?????? when you are earning more than 10,600? Do you know how many dont? Do you resent it being raised to 11K? Your normal joe would be in the same boat

The only reason your pension is taxed, is because you are double dipping (ie claiming your DB public service pension but still working). As anybody under pension age will do if the have any sense, not just ex-servicemen

If you had actually retired, then you would not be paying tax (unless maybe an officer?) A pension is income as far as HMRC are concerned and therfore taxable, regardless of rank

Oh dear.

For your info I did 31 years leaving as a SNCO. Wouldn't you expect a pension from a firm after working for them for 31 years?

From the sound of your little rant you have absolutely no idea about forces and pensions.

Where did you get the idea that only officers pay tax on their pension?

Believe it or not. when you leave the forces with a full pension HMRC automatically code it BR as they assume you will get another job, which the majority do, because you are under state pension age.

I worked my a^&e off to get that pension and now I am carrying on working to enhance my current lifestyle and provide a further private pension for when I retire.

Andy_L

OldBeanz wrote: »

Barring MP's it is difficult to think of anyone given a better pension (rightfully you do, shamefully they do).

The MP's pension isn't better than the Armed Forces scheme. (eg it has no immediate pension, no full pension at 55, and higher personal contributions)

jem16

!!!!!! wrote: »

Believe it or not. when you leave the forces with a full pension HMRC automatically code it BR as they assume you will get another job, which the majority do, because you are under state pension age.

No they don't. This is done by the pension provider responsible for paying the pension and would be used for the first pension payment whilst they await a correct tax code from HMRC.

What should actually happen is that the pension provider should use the emergency tax code but some providers wrongly choose to use the BR tax code.

System

There is only one 'handler'/provider for forces pensions and that is currently Equiniti, It used to be Xafinity

jem16

!!!!!! wrote: »

There is only one 'handler'/provider for forces pensions and that is currently Equiniti, It used to be Xafinity

I wasn't saying that there was more than one provider for forces pensions. I was saying that pension providers, including Equiniti, wrongly use the BR tax code instead of the emergency tax code.

atush

!!!!!! wrote: »

Oh dear.

For your info I did 31 years leaving as a SNCO. Wouldn't you expect a pension from a firm after working for them for 31 years?

From the sound of your little rant you have absolutely no idea about forces and pensions.

Where did you get the idea that only officers pay tax on their pension?

Believe it or not. when you leave the forces with a full pension HMRC automatically code it BR as they assume you will get another job, which the majority do, because you are under state pension age.

I worked my a^&e off to get that pension and now I am carrying on working to enhance my current lifestyle and provide a further private pension for when I retire.

I assumed from your saying it was so SMALL that you were in for a short time on a low salary. You said it was small and left us to assume.

Officers have a larger salary and therefor a larger pension. Just like in the real world.

You resent paying BRT on your pension which is silly as it is your choice to be earning enough eslewhere you would do. I of course would do the same, but unlike you I would feel I was paying my fair share of tax and not rant on about it?