Will there be Nat insurance on pension income?

woolly_wombat

noh wrote: »

If you read it carefully the suggestion is that NI may be levied on earned income (not pension income) of those over state retirement age.

Those in employment now pay no NI when they reach state retirement age. The author of that article speculates that may be changed to over the age of 70.
I doubt there would be much opposition to that.

A former colleague of mine, who was in his late sixties at the time, used to constantly boast about the fact that he no longer had to pay NI.

It didn't bother me because I worked part time and earned just over the Lower Earnings Limit, and thus paid no NI (but received NI credits), but it caused a great deal of resentment from other younger workers.

(He had also previously been made redundant from a relatively highly paid position at the age of 50, triggering immediate payment of his former lgps pension, before finding a lower grade job and building up another lgps pension. I have to admit that, at a time of ongoing pay restraint with no pay increases for several years, his constant remarks about how much his earlier lgps pension was going up caused even me to grind my teeth in frustration!)

Orwell

The Tax Payers Alliance (self appointed lobbyists) have been pressing for a merger of income tax and NI. This would in effect raise the tax on pensions drastically and should be resisted.