Why am I no better off when there's an increase in state pension?

System

This discussion was created from comments split from: State Pension and Private Pension.

AGredziak

Whenever  i get an increase on state pension e.g. £30 a month that amount is deducted from my private pension, so i am no better off, as i get it in one hand and giving it back with the other. Is this correct or am i being ripped off by the government.

Dazed_and_C0nfused

AGredziak said:

Whenever  i get an increase on state pension e.g. £30 a month that amount is deducted from my private pension, so i am no better off, as i get it in one hand and giving it back with the other. Is this correct or am i being ripped off by the government.

It's neither because that really wouldn't happen.

Or if it did there would be a third element as part of the change i.e. something else which means it just happens to mean you pay a lot of extra tax 

luvchocolate

I get 20% tax taken from works pension...so still get 80% of the increase in SP. 
No idea why you have all of it taken 

SVaz

Is your ‘private’  pension a pot of money/investments ( in which case you can choose how much income to take ) or do you get a guaranteed monthly income ?   

If your State pension uses all your personal allowance,  your other pension will always be taxed, save for any tax free cash that may be available. 

Qyburn

AGredziak said:

Whenever  i get an increase on state pension e.g. £30 a month that amount is deducted from my private pension, so i am no better off, as i get it in one hand and giving it back with the other. Is this correct or am i being ripped off by the government.

Are you sure you're not confusing weekly and monthly, particularly as the State Pension isn't paid monthly.  In very rough terms a State Pension increase of £30 per week might well result in a similar, but slightly smaller, amount of extra tax per month on your private pension.