Deferred Pension and compensation

Bettie

I am about to retire, my official date was Sept 2014 and I've not picked up my state pension .
I am trying to make sure I don't have income of more than £12570 in the tax year 2024 to 2025. I have done this by putting some money into ISAs. Also some of my savings are instant access which I intend to put into fixed rate bonds and Isas after April so some interest will come in 2025 to 2026 instead. I also intend to not pick up my pension until probably December to keep me well within the limits. I will live on savings till then. 
I am aware that there's a very slight possibility of compensation for Waspi women. Would this in any way affect my plans to avoid tax  ?
Thanks to all who helped me on this about  9 years ago..

ColdIron

Bettie said:

I am aware that there's a very slight possibility of compensation for Waspi women.

I think 'very slight' is hugely overstating the chance

Bettie

ColdIron said:

Bettie said:

I am aware that there's a very slight possibility of compensation for Waspi women.

I think 'very slight' is hugely overstating the chance

Yes. Prefer no chance. I don't want to be handed a few thousand to then have to pay 18000 or thereabouts in tax 

Andy_L

Bettie said:

ColdIron said:

Bettie said:

I am aware that there's a very slight possibility of compensation for Waspi women.

I think 'very slight' is hugely overstating the chance

Yes. Prefer no chance. I don't want to be handed a few thousand to then have to pay 18000 or thereabouts in tax 

you only pay tax on the amount over the threshold, not on the whole amount

ColdIron

Bettie said:

ColdIron said:

Bettie said:

I am aware that there's a very slight possibility of compensation for Waspi women.

I think 'very slight' is hugely overstating the chance

Yes. Prefer no chance. I don't want to be handed a few thousand to then have to pay 18000 or thereabouts in tax 

Why would you pay £18,000 on a few thousand? That's not how it works

Bettie

You pay tax on the full amount if you go into the 20% tax band 
The lump sum will be 90000 ish 

molerat

Bettie said:

You pay tax on the full amount if you go into the 20% tax band 
The lump sum will be 90000 ish 

What lump sum ?  There will be no such lump sum despite the deluded misinformation and outright lies the champagne swilling first class travelling WASPE leaders keep on pedalling.

Bettie

My deferred pension lump sum will be about 90000. My question is will compensation affect the tax position. I read this week the Waspi stuff will be reviewed in December 2024. The last thing I want is compensation in that tax year if it affects a deferred pension 

FIREDreamer

molerat said:

Bettie said:

You pay tax on the full amount if you go into the 20% tax band 
The lump sum will be 90000 ish 

What lump sum ?  There will be no such lump sum despite the deluded misinformation and outright lies the champagne swilling first class travelling WASPE leaders keep on pedalling.

WASPE should check the date of this article which I screenshotted from elsewhere. The article is over 30 years old.

ColdIron

Bettie said:

You pay tax on the full amount if you go into the 20% tax band 
The lump sum will be 90000 ish

No you don't and where did this lump sum come from?

You only pay tax on the pension sums that exceed the £12,570 Personal Allowance and then you have couple of 0% tax bands (the £5,000 Starting Rate for Savings and the £1,000 Personal Savings Allowance) to protect your savings interest

With pension and savings within these bands you may pay no tax whatsoever. If you exceed one or both you only pay tax on the part(s) that exceed those threshold(s) not the 'full amount'

FIREDreamer

ColdIron said:

Bettie said:

You pay tax on the full amount if you go into the 20% tax band 
The lump sum will be 90000 ish

No you don't and where did this lump sum come from?

You only pay tax on the pension sums that exceed the £12,570 Personal Allowance and then you have couple of 0% tax bands (the £5,000 Starting Rate for Savings and the £1,000 Personal Savings Allowance) to protect your savings interest

With pension and savings within these bands you may pay no tax whatsoever. If you exceed one or both you only pay tax on the part(s) that exceed those threshold(s) not the 'full amount'

The lump sum is a pretend WASPE compensation amount which is about 90000ish higher than what will happen in reality.