you tube pension scaremongering??

johnaka

there's a few pension video inc Ai junk or is it.I've not watch any of them.

I get a state pension as my wife do. I get a small pension on top but not much.

need we worry or is it just scaremongering.I don't see anything in the news or papers.

HMRC Pension Shock: New 2027 Tax Projections Reveal Bad News For UK Pensioners

Marcon

Ignore it.

GrumpyDil

AI junk and nothing new.

UKTaxHelper

There's a real thing underneath the clickbait. The full new state pension is £12,548 this year and the personal allowance is stuck at £12,570, so they sit £22 apart. On its own that's still not taxed. It's the small pension on top that takes the hit, because the allowance is nearly all used up, and HMRC collects it through the code on that one.

pinnks

There is no order of taxation for earnings and pensions, so it's your taxable income that takes the hit, not once source or the other. If that other source is subject to PAYE, then that is where the tax is collected.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82117326#Comment_82117326

That's potentially confusing/misleading. You don't need to have 'another small pension' to be taxed. If you have other sources of income, be it rent, dividends which exceed the dividend allowance etc etc, as @pinnks points out, it's the total taxable income which is in play, not just income which is subject to PAYE.

Good clear explanation here:

https://www.litrg.org.uk/pensions/state-pension/tax-state-pension/how-tax-collected-state-pension

mrklaw

almost be simpler to just let us have the state pension tax free and give us a 0 code. if the allowance is frozen for 4 (5?) more years you could have your first private pension withdrawals heavily taxed?

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82117478#Comment_82117478

Not everyone will have the same amount of state pension, a situation which will continue for many years to come! Some will be well above the standard personal allowance, others well below it.

if the allowance is frozen for 4 (5?) more years you could have your first private pension withdrawals heavily taxed?

The private pension payments won't be 'heavily taxed' - they will be taxed at the basic/higher rate, as applicable at the time. They could well appear to be 'heavily taxed' simply because they are carrying some of the burden of tax on the state pension element.

mrklaw

right. by heavily taxed I just mean more than you’d get on just the income itself.

eg you take 10k taxable and you’d expect 2k tax. But if the state pension in 2-4 years is 2k above the personal allowance, HMRC will want to claw £400 back off you so now you feel like you’re paying £2400 tax (a 24% rate on that private pension)

I know it comes out in the wash but still a pain

prowla

There's a load of rubbish "Your secret pension hacks" and suchlike on YT.

horsewithnoname

https://forums.moneysavingexpert.com/discussion/comment/82117536#Comment_82117536

if you feel like you’re being taxed at 24% then your feelings are wrong, better looking at actual facts