Rent and Pension

Rob321

If i am getting rental income on properties will i still be entitled to a full pension on retirement? Would it affect the amount it in any way?

Thanks

MallyGirl

state pension is unaffected by any other income you receive. Have you checked your pension statement?

Albermarle

Although do not forget like all pensions, the state pension is taxable and is added to all other earnings , including rental income , when calculating your tax bill.

lisyloo

Rob321 wrote: »

If i am getting rental income on properties will i still be entitled to a full pension on retirement? Would it affect the amount it in any way?

Thanks

You rental income won’t affect your entitlement.
You can check what you’ll get quite easily.
But both the state pension and your rental income are taxable so you’ll have to pay income tax above the personal allowance,

Btw - you’ll only get state pension at state pension age which for many people (on here) is not when they retire.

Rob321

many thanks for everyone's clear and quick advice

Dazed_and_confused

If i am getting rental income on properties will i still be entitled to a full pension on retirement?

Only if you have built up the full entitlement through your National Insurance record.

Rental income won't normally help you with that but as others have said other than being taken into account when working out any tax liability it won't have any impact on the amount paid when you get to State Pension age. Providing you have the entitlement to the pension in the first place.

Are you employed or self employed?

xylophone

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

buggy_boy

Each year you need to pay enough national insurance to gain a qualifying year. You need a certain number of years (cant remember the number maybe 35) to get the full pension.

If you retire early this could leave you short of qualifying years, there are a few options though to get the qualifying years.

- Sign on; even if you are not entitled to benefits by signing on you will get qualifying years (You may be asked to show proof you are job seeking)
- Use a limited company; if you buy a property in a limited company you can then pay yourself the minimum required (Think around the £5000 mark) to get a qualifying year but you will not actually pay any NI.
- Get a part time job; find a job you want to do as long as you earn over the minimum to get a qualifying year.


Pension income is treated incurs income tax, even the state pension so you will need to pay tax on your pension income if your total income is above the allowance.