carrieanne22
Posts: 3
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Posted At: 12/01/2010 20:28:20
How do other people feel about pensions being taxed? I would like legislation to be changed, and soon.
I am a retired nurse, so hardly in a high income bracket....what is going on?
When we retire we expect money to be tight, but not taxed....I can,t believe it.????
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Daffydee
Posts: 2775
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Posted At: 12/01/2010 21:11:17
How much tax you have to pay will depend on your age and other factors, check this link for the personal tax allowances as you may not be getting all the allowances you are due if for example you have just started your occupational pension and perhaps it is being taxed on an incorrect code. A visit to your local tax enquiry office may be worthwhile to check that all is in order.
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spice
Posts: 16
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Posted At: 12/01/2010 22:34:58
I wish I got a high enough pension to be liable for tax!
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ArchieUK
Posts: 1959
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Posted At: 13/01/2010 08:27:49
As upsetting as it may be, we are all taxed on our income, that includes state pensions - second pensions - dividend - savings etc. When you were working you did not pay tax on the money that went toward your pension be it through NI contributions or a other pension, but now the past has caught up with you and you now pay tax on your income. Like 'spice' comments some people would like to have enough money to be able to pay tax.
We would all like enough money to be able to continue as normal, but when you retire that goes out of the window, perhaps a government that would give bigger tax allowances to the over 65's would be a consideration.
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Sandgrounder2494
Posts: 2972
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Posted At: 13/01/2010 15:30:10
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special K
Posts: 576
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Posted At: 22/01/2010 22:48:11
I sympathise with this poster but there is no way you will get what you want because the State has more and more elderly people living longer. If there are few people in a certain bracket the government has little interest in taxing that particular strata of citizens but if many then government is reluctant to stop milking that group.
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ElaineK
Posts: 521
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Posted At: 23/01/2010 08:41:21
I've never been able to see any logic in this argument. If you're earning more than your personal tax allowance, then why should it matter how old you are? Taxes need to apply equally to all, regardless of their age, to be fair. Imagine the outcry if they stopped taxing people like Fred Goodwin on their pensions?
Elaine
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viola
Posts: 146
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Posted At: 24/01/2010 17:08:44
How much tax you have to pay will depend on your age and other factors, check this link for the personal tax allowances as you may not be getting all the allowances you are due if for example you have just started your occupational pension and perhaps it is being taxed on an incorrect code. A visit to your local tax enquiry office may be worthwhile to check that all is in order.
I retired from teaching recently and now have an occupational pension and the state pension. Since it is not possible to tax the state pension at source, the tax that would have been due on that is taken off the teachers' pension as well. I was confused at first but the tax office people have been pleasant, friendly and helpful.  |
gilliand
Posts: 9332
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Posted At: 26/01/2010 17:58:49
As upsetting as it may be, we are all taxed on our income, that includes state pensions - second pensions - dividend - savings etc. When you were working you did not pay tax on the money that went toward your pension be it through NI contributions or a other pension, but now the past has caught up with you and you now pay tax on your income. Like 'spice' comments some people would like to have enough money to be able to pay tax.
We would all like enough money to be able to continue as normal, but when you retire that goes out of the window, perhaps a government that would give bigger tax allowances to the over 65's would be a consideration.
Surely we do pay tax on our NI contributions. |
Delilahcat
Posts: 8395
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Posted At: 26/01/2010 20:37:03
No we don't. First you pay NI Contributions, then pension contributions. The rest is taxable income less allowances of course.
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gilliand
Posts: 9332
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Posted At: 26/01/2010 20:39:28
Well, all the years that I have done wages the paye is taken off the gross, then the PAYE and NI is taken off. Private pension are taken off the gross.
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linwight
Posts: 516
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Posted At: 28/01/2010 08:10:51
Both PAYE and NI are calculated on gross pay.
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gilliand
Posts: 9332
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Posted At: 29/01/2010 17:49:00
Both PAYE and NI are calculated on gross pay.
Thats what I was trying to say, although having read my post again, it doesnt actually make sense. Sorry.  |
Lotus
Posts: 13068
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Posted At: 30/01/2010 10:26:56
I understood what you meant Gillian, and you're right. Tax is calculated on gross pay, therefore we do, indirectly, pay tax on NI contributions.
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Silvernsurf
Posts: 431
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Posted At: 30/01/2010 19:32:46
Taxation is a sore point with most people, especially those who are retired. I certainly appreciated the extra tax free pension I was allowed at age 65. One way round the tax system if you have savings/investments. I have quite a lot tied up in investment ISA's and take one out each tax year. It provides me with investment growth and tax free income each month. I have decided to cash in my cash ISA because of the abysmal return and put it into an investment ISA in the next tax year. Even throughout the recession I have received a good return. These are really for long term investment, so not quite the same as savings in a bank or building society.
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Snail
Posts: 3340
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Posted At: 01/02/2010 07:45:20
SS - what sort of a pension scheme did you have to qualify for it being tax free on retirement? don't think I've come across that one before. Too late for me (and many on here) but might be worth spreading the word amongst out younger friends?
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Delilahcat
Posts: 8395
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Posted At: 01/02/2010 10:22:32
Snail the personal allowance increases at age 65 so you get extra tax free income. I think that is what the poster is referring to.
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Anneishere
Posts: 392
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Posted At: 01/02/2010 11:57:05
its legalised MAFIA!!!!
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Silvernsurf
Posts: 431
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Posted At: 01/02/2010 13:55:11
Yes, I did mean the tax allowance is increased at the age of 65 years. I still have to pay income tax though.
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Tantris
Posts: 851
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Posted At: 01/02/2010 15:55:49
Look on the bright side. When working the money which went to a pension avoided tax at, possibly, 40%. The tax on a pension is quite likely to be at 20%. On the whole that it to the advantage of the pensioner.
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