State Pension Increases

i kne albert davy said:
Makes you wonder if investing in a private pension is of any use or should you stash money away over the years discreetly.
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It's a hard one to call. You certainly need something aside from just the state pension. Even if you have no mortgage or rent it would be a frugal life without savings or something else to back it up. I took early retirement and my private pension paid for the utility bills, food and a few pints at the weekend. Without savings I wouldn't have had holidays or many luxuries. I think for the majority of people we don't really pay much heed to our finances. So long as we can pay the bills, have a few pints, a holiday and go to the match we're happy. When you're younger you can't contemplate retirement it's some far off pipe dream but it soon creeps up on you.
 
paulchapo said:
I'm sure they scrapped that rule at some point. It seems a bit of a nonsense if they then tax it when you need it. Smoke and mirrors
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No they didn’t!

All private pension contributions get full tax relief for basic and high rate tax payers.

So a basic rate tax payer puts £80 in a private pension, the pension provider claims a further £20 off the govt.
If you are a high rate tax payer you get £20 put in as above and you have to claim the other £20 through a tax return.

www.gov.uk

Tax on your private pension contributions

Tax you pay and tax relief you get on contributions to your private pension - annual allowance, lifetime allowance, apply for individual protection
www.gov.uk www.gov.uk
 
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blueinsa said:
So I had logged in to HMRC and noticed this COPE pension of £30.54 a week I think it was. About 12 mo the ago Phoenix Life sent me a letter asking me to co firm identity as they might hold a policy for me. In typical bloke fashion I ignored it and they asked again a few months ago, again, I ignored. Thanks to the wife, she insisted I contact them and lo and behold, they hold a pension with now defunct Britannia who I opted out with in 1988. It’s a with profits scheme and was attached to a final salary works scheme and it’s sat with £43790.10. That’s my money I’d have lost, all because I’m daft, forgetful, getting old and just wasn’t arsed about. Thank fuck for the wife. I’m now chasing several lost schemes I think I have, so far have tracked 4 down with various size posts ranging from a couple of £Grand up to one with £13k in it and I still think I have more to find.

Moral of the story is check HMRC, if you see COPE pension amount and don’t know what it is, get digging because an amount like mine of £30 a week, is a considerable size pot.
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Can I have a borrow?
 
paulchapo said:
The rise is immediately wiped out as everything goes up every year. If you have a private pension, no matter how small , if it takes you over the paltry £12,570 limit they tax that fucker as well.
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As far as I know the UK state pension has never been tax free but has been paid gross.
The idea I think is that it will take up most of one's tax allowances (tax code), any additional state or private pension then only has the remainder of allowances tax free and you pay tax as if you are still working and not retired on them.
 
SilverFox2 said:
As far as I know the UK state pension has never been tax free but has been paid gross.
The idea I think is that it will take up most of one's tax allowances (tax code), any additional state or private pension then only has the remainder of allowances tax free and you pay tax as if you are still working and not retired on them.
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You only pay income tax, the benefit being that its been allowed to grow in a tax free wrapper for x years.
 
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