UK State Pension

Ho Chi Man City said:
Definitely not, I currently get 994.08 every 4 weeks, up 4.8% in April. On a drawdown private pension which I haven’t touched yet so not sure about the tax implications once I go over the 12,570 threshold.
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This must be wrong then:

The maximum new State Pension for 2026/27 will be £241.30 per week, a 4.8% increase from 2025/26 under the triple lock, which amounts to approximately £12,548 per year. This rate applies to those who reached State Pension age on or after 6 April 2016, generally requiring 35 qualifying years of National Insurance contributions.

The "tax implications" are simple, anything over £12570 is taxable at your marginal rate of 20%.
 
hampshireblue said:
This must be wrong then:

The maximum new State Pension for 2026/27 will be £241.30 per week, a 4.8% increase from 2025/26 under the triple lock, which amounts to approximately £12,548 per year. This rate applies to those who reached State Pension age on or after 6 April 2016, generally requiring 35 qualifying years of National Insurance contributions.

The "tax implications" are simple, anything over £12570 is taxable at your marginal rate of 20%.
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DWP SP
+£994.08
>

The above is from my bank statement, obviously I could have just made that up but I can assure you it’s genuine.
 
Ho Chi Man City said:
DWP SP
+£994.08
>

The above is from my bank statement, obviously I could have just made that up but I can assure you it’s genuine.
Click to expand...
Perhaps like me you have some serps or similar payments that split off from your state payments which are then less but added together give you your total state pension.
You can check in the original letter they sent you which then increases each year sometimes at individually different rates.
 
SilverFox2 said:
Perhaps like me you have some serps or similar payments that split off from your state payments which are then less but added together give you your total state pension.
You can check in the original letter they sent you which then increases each year sometimes at individually different rates.
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Think you’re right there, I worked for a couple of companies who weren’t as pension friendly as they are now so didn’t get the tax advantage of paying into a pension. Goes up 4.8% in April in line with the increase announced in last years budget.
 
Ho Chi Man City said:
Think you’re right there, I worked for a couple of companies who weren’t as pension friendly as they are now so didn’t get the tax advantage of paying into a pension. Goes up 4.8% in April in line with the increase announced in last years budget.
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Yes this year it's the same 4.8 percent but last year they were different.
I protested but got nowhere so good to see now the same.

In our time we could not take our pensions with us if we changed jobs so when I retired I had a good number of private pensions that were frozen.
I consolidated most of them and bought an annuity which was the only option those years ago.
 
SilverFox2 said:
I remember years ago my friend saying to his son "When I die go in my right hand trouser pocket and you'll find a 2 Bob coin. That's all I am going to leave"
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My mother and father in law always said that when they die all they’re leaving is the house as they will have spent all the money
For the last six years they’ve done nothing. They sit indoors watching GB news and panic about the cost of everything. They’re not rich, but are comfortable. Some days they don’t heat their water and boil a kettle to wash up
No matter what is said to them they don’t change, even when the FiL had sepsis
They’re collecting money for no reason and it is driving us mad
 
heslops barnet said:
No pockets in shrouds………spend it whilst you can
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You’re so right, I’ve posted elsewhere about two of my friends, along with myself all born May 1959, one at his funeral three weeks ago after he died in Thailand from a virus. Then, a week last Thursday my best buddy (he was at the funeral as well) of nearly 57 years who I play golf with, go to City and socialise with had a severe stroke. He’s going to be in hospital for a while and we’ve no idea about his recovery. I’m devastated tbh but it’s made me realise the fragility of life.
 
heslops barnet said:
Both my parents saved up for their old age and when they both had to go into a care home they were the only ones who had to pay, over £1200 per week.
All the other residents had their care paid for by the council as they had no savings etc.
Enjoy life whilst you’re still able……
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Yep, if you never spend it becomes a habit, can’t just change from being a saver to a spendthrift.
 
dickie davies said:
My mother and father in law always said that when they die all they’re leaving is the house as they will have spent all the money
For the last six years they’ve done nothing. They sit indoors watching GB news and panic about the cost of everything. They’re not rich, but are comfortable. Some days they don’t heat their water and boil a kettle to wash up
No matter what is said to them they don’t change, even when the FiL had sepsis
They’re collecting money for no reason and it is driving us mad
Click to expand...

People of a certain generation were brought up this way. Pay your way, watch the pennies and the pounds will look after themselves, save for a rainy day etcetera.
Once they reach a certain age many obviously don't go out socialising as much or on holidays, particularly abroad. If they have private pensions as well as the state one and have no mortgage or rent then the money just continues to accumulate in their bank account. You can't change what's been ingrained in them from birth. Mind you the way the world is going everybody is going to need every penny they've got just to survive.
 
dickie davies said:
My mother and father in law always said that when they die all they’re leaving is the house as they will have spent all the money
For the last six years they’ve done nothing. They sit indoors watching GB news and panic about the cost of everything. They’re not rich, but are comfortable. Some days they don’t heat their water and boil a kettle to wash up
No matter what is said to them they don’t change, even when the FiL had sepsis
They’re collecting money for no reason and it is driving us mad
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The sudden realisation that my Rainy Day savings were actually upon me due to my age changed me and I found a new lifestyle where value for money was still important but it does not override my comfort in life and it's needs and wants

Thanks for your post.
 
SilverFox2 said:
Yes, that's how I remembered it many years ago except it was a Newcastle accent.
Things have changed I think because of fraudulent claims for all benefits hence new systems and much more checking.
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Everything changes. The only folk who can't cope with all these changes support a team from Trafford.
 
paulchapo said:
People of a certain generation were brought up this way. Pay your way, watch the pennies and the pounds will look after themselves, save for a rainy day etcetera.
Once they reach a certain age many obviously don't go out socialising as much or on holidays, particularly abroad. If they have private pensions as well as the state one and have no mortgage or rent then the money just continues to accumulate in their bank account. You can't change what's been ingrained in them from birth. Mind you the way the world is going everybody is going to need every penny they've got just to survive.
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MiL slated her mum (wife’s grandmother) for hoarding tinned fruit and sugar
They had such a young outlook on life when I first met them. The change has been unreal

Anyway, wifey, her brother, me and my sister in law have all picked a room to search when they pass.
It’s a competition to see who can find the biscuit tin with the money in
 
Ho Chi Man City said:
Definitely not, I currently get 994.08 every 4 weeks, up 4.8% in April. On a drawdown private pension which I haven’t touched yet so not sure about the tax implications once I go over the 12,570 threshold.
Click to expand...
If you are careful (been talking at work about this as I plan to go in 5 years when I’m 61)

You get £12k tax free

And e.g. your 25% pot is £100k

You can spread that over 10 years taking £10k per year this £22k per year

Hey presto no tax and the remaining money continues to grow
 
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dickie davies said:
MiL slated her mum (wife’s grandmother) for hoarding tinned fruit and sugar
They had such a young outlook on life when I first met them. The change has been unreal

Anyway, wifey, her brother, me and my sister in law have all picked a room to search when they pass.
It’s a competition to see who can find the biscuit tin with the money in
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Look under the corner of carpets and go through all wardrobes with a fine tooth comb.

I speak from experience.

We found hundreds of pounds in envelopes.
 
Maccblue said:
If you are careful (been talking at work about this as I plan to go in 5 years when I’m 61)

You get £12k tax free

And e.g. your 25% pot is £100k

You can spread that over 10 years taking £10k per year this £22k per year

Hey presto no tax and the remaining 75% continues to grow
Click to expand...
Stick as much as possible in cash ISAs too.
Income tax free.
 
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