State Pensions + Personal Tax Allowance

Blue_Parrot

Our state pensions will go up in April, BUT the personal tax allowance stays the same.

That means that there'll be more income for them to tax. (We are both retired, but both have to pay tax.)

Will we end up ahead, or stay the same? It seems to me that if we stay the same, we're going to end up worse off, because of cost rises elsewhere e.g., weekly shopping bill for instance.

tacpot12

It will depend on how much state pension you will be paid and whether you have any other income other than your state pensions. Unless you have calculated yourself how much your pensions will go up by, and tell us about any other income you have, I can't see anyone being able to advise you. 

Blue_Parrot

Hallo tacpot12

We had letters weeks ago telling us how much our pensions are going to rise, and we have no other taxable incomes.

My new State Pension will be £2,759 over, and his will be £5,077 over the personal tax allowance limit. Again.

missile

Blue_Parrot said:

Hallo tacpot12

We had letters weeks ago telling us how much our pensions are going to rise, and we have no other taxable incomes.

My new State Pension will be £2,759 over, and his will be £5,077 over the personal tax allowance limit. Again.

Strange, you must have a more generous State Pensions than I do?

For those of us who reached State Pension age on or after April 6 2017 the maximum is currently £185.15/ week i.e. £9731.80p.a. In 23/24 State Pension will increase to £203.85/ week i.e. £10,600.20

This is still well bellow the standard Personal Allowance of £12,570. 
 

Blue_Parrot

Yes, none of our previous employers contracted out and hence we both get/got an additional SERPS amount. If I've got that the wrong way round, it doesn't matter now....and my state pension started in 2012. More or less the same applies to him, but he got more SERPS because he was paid more than me. That's the way I've always understood it, but none of this answers my original question.

I don't know how to embed a quotation, so here it is from Which: In addition to the basic state pension, the state previously provided a second-tier top-up pension, based on how much you earned - the additional state pension. Introduced in 1978 and originally called the state earnings related pension scheme (Serps), it became the state second pension (S2P) in 2002.

missile

Those who reached State Pension age before April 6 2017 could receive full basic pension of £141.85 plus a maximum Serps pension of £185.90. This adds up to a total of £327.75 a week, or £17,043 a year.

I don't understand how your OH could be "£5,077 over the personal tax allowance limit"

Dazed_and_C0nfused

missile said:

Blue_Parrot said:

Hallo tacpot12

We had letters weeks ago telling us how much our pensions are going to rise, and we have no other taxable incomes.

My new State Pension will be £2,759 over, and his will be £5,077 over the personal tax allowance limit. Again.

Strange, you must have a more generous State Pensions than I do?

For those of us who reached State Pension age on or after April 6 2017 the maximum is currently £185.15/ week i.e. £9731.80p.a. In 23/24 State Pension will increase to £203.85/ week i.e. £10,600.20

This is still well bellow the standard Personal Allowance of £12,570. 
 

No, that is the standard new State Pension.

Plenty of people are getting more than that as transitional rules apply to everyone getting new State Pension at the moment.

missile

Dazed_and_C0nfused said:

missile said:

Blue_Parrot said:

Hallo tacpot12

We had letters weeks ago telling us how much our pensions are going to rise, and we have no other taxable incomes.

My new State Pension will be £2,759 over, and his will be £5,077 over the personal tax allowance limit. Again.

Strange, you must have a more generous State Pensions than I do?

For those of us who reached State Pension age on or after April 6 2017 the maximum is currently £185.15/ week i.e. £9731.80p.a. In 23/24 State Pension will increase to £203.85/ week i.e. £10,600.20

This is still well bellow the standard Personal Allowance of £12,570. 
 

No, that is the standard new State Pension.

Plenty of people are getting more than that as transitional rules apply to everyone getting new State Pension at the moment.

Like I said > 
"For those of us who reached State Pension age on or after April 6 2017"
Like I also said >
"Those who reached State Pension age before April 6 2017 could receive full basic pension of £141.85 plus a maximum Serps pension of £185.90. This adds up to a total of £327.75 a week, or £17,043 a year.

Silvertabby

missile said:

Those who reached State Pension age before April 6 2017 could receive full basic pension of £141.85 plus a maximum Serps pension of £185.90. This adds up to a total of £327.75 a week, or £17,043 a year.

I don't understand how your OH could be "£5,077 over the personal tax allowance limit"

Quite possible.  A friend's State pension is currently over £22K, due to high SERPS and 5 years deferral at over 10% per year.  

sheramber

missile said:

Those who reached State Pension age before April 6 2017 could receive full basic pension of £141.85 plus a maximum Serps pension of £185.90. This adds up to a total of £327.75 a week, or £17,043 a year.

I don't understand how your OH could be "£5,077 over the personal tax allowance limit"

The OP is stating what they will receive next year after the 10.1% increase.

missile

Geez there are some really pedant posters on here :-)

"Quite possible.  A friend's State pension is currently over £22K, due to high SERPS and 5 years deferral at over 10% per year. "
I sincerely hope they will live long enough to benefit from deferring their pension. 

"The OP is stating what they will receive next year after the 10.1% increase."
My post clearly stated "In 23/24 State Pension will increase .... "