Drawdown pension tax ?

Sunrise27

Hubby and I are both  still working but are looking to drawdown a small amount of our pension each month ( we have spoken to our financial advisor ) 
I was just wondering how we pay tax on the drawdown pension ? 

Obviously at the moment it is done through PAYE on our wages 
also I know you stop paying national insurance once you hit retirement age, seeing as retirement age depends on what year you were born does it literally depend on that or is there a generic age when you stop pay8ng it !
thanks in advance 

TadleyBaggie

Your pension provider will be issued with a tax code by HMRC once they start the drawdown and tax will be deducted at source in the same way as PAYE is done.

NI is no longer deducted on earned income once you reach State Pension Age, however it is never deducted from pension income even before SPA.

Dazed_and_C0nfused

Sunrise27 said:

Hubby and I are both  still working but are looking to drawdown a small amount of our pension each month ( we have spoken to our financial advisor ) 
I was just wondering how we pay tax on the drawdown pension ? 

Obviously at the moment it is done through PAYE on our wages 
also I know you stop paying national insurance once you hit retirement age, seeing as retirement age depends on what year you were born does it literally depend on that or is there a generic age when you stop pay8ng it !
thanks in advance 

It's basically the same as wages.

No NI is payable on pension income but it will be reported to HMRC like wages are.

The pension company will use the emergency tax code (1257L) on the first payment so you will probably owe a small amount of tax.

Once HMRC receive details of the first payment they will review your tax codes and you are likely to get a BR (basic rate) code for the pension.

Sunrise27

And then it just gets paid into our account each month minus the tax paid ? 

Dazed_and_C0nfused

Sunrise27 said:

And then it just gets paid into our account each month minus the tax paid ? 

Yes, based on whatever taxable income you decide to take out of your pension.