Pension Query.
Discussion
Hi Guys,
I am in the fortunate position of being able to retire in 3 weeks time. My pension kicks in at the start of September and I am trying to work out just how much I will end up with. I realise that I will have to pay tax on anything over my normal tax allowance, but what other stoppages could be taken out? Will I have to pay National Insurance etc? Apologies if this is a rather simplistic question that may have been answered several times on previous threads, thanks for all positive responses.
I am in the fortunate position of being able to retire in 3 weeks time. My pension kicks in at the start of September and I am trying to work out just how much I will end up with. I realise that I will have to pay tax on anything over my normal tax allowance, but what other stoppages could be taken out? Will I have to pay National Insurance etc? Apologies if this is a rather simplistic question that may have been answered several times on previous threads, thanks for all positive responses.
You dont pay NI once you reach state pension age. Otherwise you just pay tax on your pension income - use the calculator here and tick box for no NI if you wont pay it.
https://listentotaxman.com/
https://listentotaxman.com/
bogie said:
You dont pay NI once you reach state pension age. Otherwise you just pay tax on your pension income - use the calculator here and tick box for no NI if you wont pay it.
https://listentotaxman.com/
Thanks for this, the only issue is that, although I have reached the retirement age for my professions pension, namely 60, I am still 6 years away from my state pension. Consequently, does that mean I will pay NI on the pension I start getting in September?https://listentotaxman.com/
NI is only paid on earned income, not unearned income which is, I think, how pension income is treated. As long as you’ve made enough NI contribution (35 years?) to qualify for the maximum state pension, assuming your eligible for one, there’s no need to make any further NI contributions as far as I’m aware. Though, I’m not an expert so happy to be corrected!
Mr.Chips said:
Thanks for this, the only issue is that, although I have reached the retirement age for my professions pension, namely 60, I am still 6 years away from my state pension. Consequently, does that mean I will pay NI on the pension I start getting in September?
It would probably pay you to get a bit of independent pension advice from a financial advisor.Doesn’t have to be expensive.
Thanks for all the responses guys. I have over 35 years NI contributions and therefore have enough for my state pension when I am 66. I was just concerned that I was going to have an unexpected stoppage on my professional pension. I have allowed for tax, so was just checking if there was something I had missed.
Thanks again.
Thanks again.
Mr.Chips said:
Thanks for all the responses guys. I have over 35 years NI contributions and therefore have enough for my state pension when I am 66. I was just concerned that I was going to have an unexpected stoppage on my professional pension. I have allowed for tax, so was just checking if there was something I had missed.
Thanks again.
Have you actually checked with the Pension Forecast site that you have enough contributing years? It's not as straightforward as saying you have 35 years so that will get you a full pension (although it may do).Thanks again.
https://www.gov.uk/check-state-pension
red_slr said:
It physically shows "full year" and lists each individual year since you are 16 years old in a big long list with a summary on the right hand side showing how many years you have and how many missing years so I assume the OP has seen this.
True, but 35 years is not some magic number; I need 44 years to get a full pension.Mr Pointy said:
red_slr said:
It physically shows "full year" and lists each individual year since you are 16 years old in a big long list with a summary on the right hand side showing how many years you have and how many missing years so I assume the OP has seen this.
True, but 35 years is not some magic number; I need 44 years to get a full pension.keirik said:
I reckon if he can afford to retire early then the state pension is probably a nice to have rather than a crucial difference between affluence and poverty
He is 60 not 45! The SP might not make a massive difference to him (or it might!) but if you have paid in over a lifetime you certainly want to get what you are entitled too. I wont get my SP till I am at least 67 but I intend to get as much of it as possible. I am currently going through trying to get 6 extra years added on which HMRC are showing as "not full" despite me earning over the LEL. If any financial institution was to try and pull some of the tricks HMRC pull they would get strung up!!
Hi Guys,
Thanks for all the responses. I have checked my current status for my state pension, apparently I need 1 more year to gain a full pension, so I may investigate the idea of paying extra, after I have retired. However, the shortfall is about £4 a week, so if the cost of the extra is too much, I may just leave it.
Apart from that, everything is now set in motion, so I am just waiting for the next 12 working days to pass.
Thanks again for your responses.
Thanks for all the responses. I have checked my current status for my state pension, apparently I need 1 more year to gain a full pension, so I may investigate the idea of paying extra, after I have retired. However, the shortfall is about £4 a week, so if the cost of the extra is too much, I may just leave it.
Apart from that, everything is now set in motion, so I am just waiting for the next 12 working days to pass.
Thanks again for your responses.
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