NHS Pension gone down, why?

Allkid

I have just noticed that my NHS pension has gone down, although my state has increase.
is there a reason for this, i do not understand why.
on-line it mention something to do with my state pension increase the NHS will go down.
i am waiting for call back. In the mean time, any ideas?

Notepad_Phil

By how much?

I would hazard a guess that your state pension + NHS pension when added together means that you need to pay tax. As the state pension is paid without being taxed then any increase in state pension means that the tax will fall on the NHS pension and so means that the NHS amount paid will be reduced.

eskbanker

This mirrors a similar thread, in which the issue of taxation of increased state and NHS pensions was discussed at length, and explained patiently by multiple posters in response to the OP being convinced they were being swindled:

https://forums.moneysavingexpert.com/discussion/6102135/3-9-state-pension-increase-means-my-nhs-pension-drops/p1

silverwhistle

Look at it this way. Next year I get my state pension. I already get a private pension on which I pay a little tax. In calculating how much extra I will get I take the forecast state pension and take off 20% for the standard rate of tax, so I know how much my income will go up by. But in fact that tax will come off my private pension amount which will go down.

Allkid

thanks
i think i understand.
did not realized i would get taxed on my pension.

eskbanker

Allkid said:

thanks
i think i understand.
did not realized i would get taxed on my pension.

Ignoring the likes of savings and dividend income, once your annual earnings exceed your personal tax allowance (£12,500) then yes, they're subject to income tax on the amount above that.