State and private pensions have gone up, but I'm worse off

Silvertabby

...because our pensions (State and occupational) go into a joint bank account, and monitoring all of those payments would be too much of a faff.

Plus we like having two payments in one month (13 X 4-weekly payments per year).

squirrelpie

https://forums.moneysavingexpert.com/discussion/comment/81976398#Comment_81976398

That sounds like a reason to change your banking arrangement, not your pension payments!

We each have individual accounts that pensions are paid into, and we have a joint account that we fund from those individual accounts. Works well for us.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81976448#Comment_81976448

We always had joint accounts that wages/ pensions went into.

Occupational pension payed monthly. s SIP drawdown monthly and two state pensions paid 4 weekly.

Suited us.Never caused a problem.

See no need for weekly payments.

Do not know anybody who does have weekly payments

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81976448#Comment_81976448

We've had a joint bank account for over 30 years. It works for us, as we have similar attitudes to our finances. But wouldn't work for some couples, if one is a 'happy spender'.

xylophone

Do not know anybody who does have weekly payments.

I know four pensioners who are paid weekly. When you come to think of it, the whole system is based on weekly payments, presumably from the time when people had a pension book and collected their cash from the post office.

It does appear to simplify the tax situation? The pensioners I mentioned in my previous (both of whom have occupational pensions paid monthly), hve the weekly state pensions paid into their joint account and move it as required.

They both say they'd rather have the money in their pockets than leave it in the government coffers!

eskbanker

It does appear to simplify the tax situation?

I can see the cashflow benefit with weekly payment, but how does it simplify the tax situation, given that the taxation is based on entitlement accrual rather than the actual payments?

xylophone

taxation is based on entitlement accrual rather than the actual payments?

See my previous - both pensioners have new 26/7 tax codes reflecting the increase in state pension ; they have both checked their occupational pension payslips for 1 May (available on line about a week in advance of payment) and deductions are exactly as they could have predicted from new codes. supplied end March in letters from HMRC.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81976938#Comment_81976938

But to me that still doesn't explain how receiving SP weekly as opposed to four-weekly "simplifies the tax situation"? The PAYE coding changes you refer to would surely have applied regardless of SP payment frequency?

xylophone

Yes, but as far as I can see from previous posts, people on the four weekly in arrears system seem to be those most flummoxed by the size of deductions from their occupational/private pensions after a new tax code is applied? Or perhaps I have misunderstood?

molerat

I suspect it is "simpler" because weekly is paid on the date due which means what you get in the tax year is what you are taxed on.