Which?: Half a million risk state pension tax hike

Browntoa

Which?: Half a million risk state pension tax hike – Which? News.


https://www.which.co.uk/news/2019/04/half-a-million-risk-state-pension-payments-slashed-by-unnecessary-tax/

p00hsticks

Browntoa wrote: »

Which?: Half a million risk state pension tax hike – Which? News.

https://www.which.co.uk/news/2019/04/half-a-million-risk-state-pension-payments-slashed-by-unnecessary-tax/

I think the thread title contradicts the article - it should be 'Half a million risk state pension tax hike if they DON'T defer it' - the half a million being people who continue working after state pension age but don't delay claiming their state pension.

Browntoa

Ammended.....

PennyForThem_2

All due to personnal circumstance, isn't it? I deferred until I reduced my hours. The state pension now makes up for the salary I am missing.

My tax bracket is always going to be what it is. I also don't believe that your expenditure reduces when you leave work -- much. (it does reduce a little but not if you want to enjoy yourself)

Pollycat

I don't agree it's unnecessary tax.

Over half a million people who work beyond retirement age could be paying unnecessary tax on their state pension, according to new research published by insurer Royal London.

Why wouldn't you expect to pay tax if your total income puts you over your tax-free allowance?

Do some people believe that the state pension is not taxable?

Flugelhorn

this assumes that any private / work pensions don't already mean that the state pension will be wholly taxed

agrinnall

I note that there are comments from Steve Webb, who was Minister of State for Pensions in the ConDem coalition, so why didn't he do anything about it then? No doubt for fear of jeopardising his opportunities to be paid megabucks when moving into the private sector when he inevitably lost his seat at the next election.

Pollycat

Pretty clear:

What’s taxed

You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates.
Your total income could include:

• the State Pension you get (either the basic State Pension or the new State Pension)
• Additional State Pension
• a private pension (workplace or personal) - you can take some of this tax-free
• earnings from employment or self-employment
• any taxable benefits you get
• any other income, such as money from investments, property or savings

https://www.gov.uk/tax-on-pension