UK State Pension

[hampshireblue]

No tax just yet as this years State Pension is about 12,900 so technically around 330 to be taxed but Reeves said she would find a way not to tax pensions if that was the only income.

I’m living off SP and drawing money from my ISA’s at the moment, I don’t need the draw down just yet and it was doing very well, through a company called Haven Direct who advised me to leave it invested as the two funds I’ve invested in rose 51 and 80% in the previous 5 years.

I hope I'm wrong but I'm not sure the RR comments about tax have been formalised yet. It was very much a suggestion around the fact that the SP was so close to the tax threshold that they were looking at ways to ensure no tax was paid when the SP exceeded that threshold. It hasn't done so yet and won't until April next year. Good luck with it all.

 

[Blue Maverick]

Most people don't realize that the generation currently entering retirement is the first to face a 30-year stretch of unstructured time with no cultural script for how to fill it meaningfully - The Expert Editor https://share.google/V1SivoGqlmPp4T73U

Great read that and it’s true,I’ve been retired 3 1/2 years and have struggled at times, my wife is a lot younger and frankly by the time she retires I’ll either be dead or fucked that we won’t be galavanting round the world together. Having a teenager daughter unlike many who retire has me running around but apart from that it’s dog walk, school run, dog walk, mooch around the house (watch a film or bit of tv or gaming) until school run, cook tea days done! My camper van is done now so I’ll be out a few times a month with the dogs and that’s it. I think many expect to be holidaying 365 days a year and you don’t u mess youre rich, certainly since I’ve finished as with everyone prices have risen and it doesn’t go as far.

 

[flook]

Great read that and it’s true,I’ve been retired 3 1/2 years and have struggled at times, my wife is a lot younger and frankly by the time she retires I’ll either be dead or fucked that we won’t be galavanting round the world together. Having a teenager daughter unlike many who retire has me running around but apart from that it’s dog walk, school run, dog walk, mooch around the house (watch a film or bit of tv or gaming) until school run, cook tea days done! My camper van is done now so I’ll be out a few times a month with the dogs and that’s it. I think many expect to be holidaying 365 days a year and you don’t u mess youre rich, certainly since I’ve finished as with everyone prices have risen and it doesn’t go as far.

The simple truth is you're responsible for your happiness in retirement. Don't expect someone to hand it to you on a plate. Assuming you can live within your means, then this generally relates to filling your time in a manner which makes you happy. The issues with this are:

1 - You're conditioned by a lifetime of working to being productive, it's a mindset thing which you need to get out of or you may as well have carried on working. If it makes you happy you shouldn't really give two fucks as to whether it's productive or not.
2 - You have to be inquisitive or creative enough to find that which makes you happy. It's not necessarily easy
3 - It's unlikely that one activity will tick all your boxes, you need to keep both mind and body engaged

I've been retired almost 3 years, my time is filled with two physical activities and 1 mental activity. I have room for more but as yet haven't found anything else which makes me happy. Still have a shortlist to try out though :)

In a nutshell, retirement, like life, is largely what you make it

 

[Blue Maverick]

The simple truth is you're responsible for your happiness in retirement. Don't expect someone to hand it to you on a plate. Assuming you can live within your means, then this generally relates to filling your time in a manner which makes you happy. The issues with this are:

1 - You're conditioned by a lifetime of working to being productive, it's a mindset thing which you need to get out of or you may as well have carried on working. If it makes you happy you shouldn't really give two fucks as to whether it's productive or not.
2 - You have to be inquisitive or creative enough to find that which makes you happy. It's not necessarily easy
3 - It's unlikely that one activity will tick all your boxes, you need to keep both mind and body engaged

I've been retired almost 3 years, my time is filled with two physical activities and 1 mental activity. I have room for more but as yet haven't found anything else which makes me happy. Still have a shortlist to try out though :)

In a nutshell, retirement, like life, is largely what you make it

Walking the dogs for exercise and gaming for my brain stuff, I agree with all you’ve said btw.

 

[heslops barnet]

The simple truth is you're responsible for your happiness in retirement. Don't expect someone to hand it to you on a plate. Assuming you can live within your means, then this generally relates to filling your time in a manner which makes you happy. The issues with this are:

1 - You're conditioned by a lifetime of working to being productive, it's a mindset thing which you need to get out of or you may as well have carried on working. If it makes you happy you shouldn't really give two fucks as to whether it's productive or not.
2 - You have to be inquisitive or creative enough to find that which makes you happy. It's not necessarily easy
3 - It's unlikely that one activity will tick all your boxes, you need to keep both mind and body engaged

I've been retired almost 3 years, my time is filled with two physical activities and 1 mental activity. I have room for more but as yet haven't found anything else which makes me happy. Still have a shortlist to try out though :)

In a nutshell, retirement, like life, is largely what you make it

Retirement without plans can be a downward spiral……keep busy and have a reason to get out of bed in the morning

 

[Gray]

It is shocking when your State Pension exceeds your personal allowances and your private pension is taxed with a ‘K’ code.

They add an amount to your private pension (that you don’t actually receive) before they calculate the tax due.

If you didn’t have any private pensions they would reduce your State Pension.

How can that be right?

 

[Gareth Barry Conlon]

It is shocking when your State Pension exceeds your personal allowances and your private pension is taxed with a ‘K’ code.

They add an amount to your private pension (that you don’t actually receive) before they calculate the tax due.

If you didn’t have any private pensions they would reduce your State Pension.

How can that be right?

As with all these things, the current generation of retirees are mostly responsible for the national debt. They have been around the longest and voted in all of the idiots that mismanaged government over the last few decades. It could be argued pension should be cut now as future generations are going to get taxed harder and will get less for it.

 

[flook]

 

[heslops barnet]

As with all these things, the current generation of retirees are mostly responsible for the national debt. They have been around the longest and voted in all of the idiots that mismanaged government over the last few decades. It could be argued pension should be cut now as future generations are going to get taxed harder and will get less for it.

Obviously not an foc?

 

[Gray]

As with all these things, the current generation of retirees are mostly responsible for the national debt. They have been around the longest and voted in all of the idiots that mismanaged government over the last few decades. It could be argued pension should be cut now as future generations are going to get taxed harder and will get less for it.

If you think that there was mismanaged government over the last few decades?

You ain’t seen nothing yet.

 

[denislawsbackheel]

Obviously not an foc?

But a fully fledged idiot.

 

[SilverFox2]

As with all these things, the current generation of retirees are mostly responsible for the national debt. They have been around the longest and voted in all of the idiots that mismanaged government over the last few decades. It could be argued pension should be cut now as future generations are going to get taxed harder and will get less for it.

Do you think that not increasing allowances in line with pension inreases caused it?
Personally I have always paid tax on my pensions so I contribute in the same way as the workers.

 

[denislawsbackheel]

It is shocking when your State Pension exceeds your personal allowances and your private pension is taxed with a ‘K’ code.

They add an amount to your private pension (that you don’t actually receive) before they calculate the tax due.

If you didn’t have any private pensions they would reduce your State Pension.

How can that be right?

You need to explain this better.
It doesn’t make any sense to me.

 

[jockblue]

It is shocking when your State Pension exceeds your personal allowances and your private pension is taxed with a ‘K’ code.

They add an amount to your private pension (that you don’t actually receive) before they calculate the tax due.

If you didn’t have any private pensions they would reduce your State Pension.

How can that be right?

Your state pension is paid tax free outside of the PAYE system. So, if you didn't have any private pension, it would only just be taxed as the SP is slightly higher than the annual allowance.

Any private pension on top of your state pension will be fully taxed as if you had no allowance (as you've had the £12570 in tax free money as SP). So, if you earned say £15000 as a private pension, that would be taxed at 20% via a K code.

But to answer your point, you're not being double taxed if you have 2 pensions and a K code.

 

[denislawsbackheel]

That’s what I thought!
Couldn’t understand what he was going on about.

 

[remember arthur mann]

Great read that and it’s true,I’ve been retired 3 1/2 years and have struggled at times, my wife is a lot younger and frankly by the time she retires I’ll either be dead or fucked that we won’t be galavanting round the world together. Having a teenager daughter unlike many who retire has me running around but apart from that it’s dog walk, school run, dog walk, mooch around the house (watch a film or bit of tv or gaming) until school run, cook tea days done! My camper van is done now so I’ll be out a few times a month with the dogs and that’s it. I think many expect to be holidaying 365 days a year and you don’t u mess youre rich, certainly since I’ve finished as with everyone prices have risen and it doesn’t go as far.

Blimey ! It only seems yesterday you retired.
I'm in a similar boat to you with the partner being younger and by the time she's retired I'll be a goner. Extending retirement age has definitely cocked my final days up.

 

[hampshireblue]

It is shocking when your State Pension exceeds your personal allowances and your private pension is taxed with a ‘K’ code.

They add an amount to your private pension (that you don’t actually receive) before they calculate the tax due.

If you didn’t have any private pensions they would reduce your State Pension.

How can that be right?

I don't understand how this works. Can you explain please.

 

[hampshireblue]

Blimey ! It only seems yesterday you retired.
I'm in a similar boat to you with the partner being younger and by the time she's retired I'll be a goner. Extending retirement age has definitely cocked my final days up.

Bloody hell, how much younger?

 

[Gray]

Your state pension is paid tax free outside of the PAYE system. So, if you didn't have any private pension, it would only just be taxed as the SP is slightly higher than the annual allowance.

Any private pension on top of your state pension will be fully taxed as if you had no allowance (as you've had the £12570 in tax free money as SP). So, if you earned say £15000 as a private pension, that would be taxed at 20% via a K code.

But to answer your point, you're not being double taxed if you have 2 pensions and a K code.

I never said I was double taxed. I said my State Pension would be reduced if I had no private pension because it is now more than my personal allowances.

 

[remember arthur mann]

Bloody hell, how much younger?