I think it’s different when taking into account the State Pension which I get. I can still access the 25% tax free portion but anything else I release is subject to 20% income tax but as a drawdown I can take an amount every year that doesn’t land me in the higher bracket and as you say the pension (mine is a SIP which has grown exponentially) continues to grow. If any of that is incorrect I’m open to being educated.
It is disgusting how people who look after their money and never sponge off the State are treated when they eventually need care.
Idiotic post.
Why are you so rude and unsympathetic to anyone who doesn’t subscribe to your “perfect” life? It’s shocking at times, you don’t need to be so personal.
Weird post that makes no logical sense as the parents who saved up was in the same place receiving the same "shit" care as the ones that had nothing.
It's just the damp and his rheumatism and arthritic joints.
Nah,he's always been like that.
I didn't even know the class 2 existed. I've always assumed it would cost be about a grand a year.
As said previously some of us had NI deductions that included SERPS etc for a few years.
Ok thanks. In which case you're probably already paying 20% tax on the amount above £12570.
Rachel Reeves did say on the Martin Lewis show they were looking at a way to avoid any Seniors paying income tax if only receiving the State Pension. That’s my dilemma, I do only receive the SP but I have my draw down which I haven’t used yet, it’s been growing at a healthy rate until the Iran war so I’m really not sure how that affects my tax liability. I know as soon as I do draw down I will be taxed but I’m not intending to do so just yet.
If she intends to use the Spanish tax way then here if the only pension is State you don't pay tax until over ca 20k euro pa but just one small extra pension and the whole is taxed after allowances.
Are you paying any tax already? I'd be surprised if not. Your SIPP grows tax free and only becomes liable on drawdown-after the 25% Tax Free Cash of course. If your SIPP is flexible, you should be able to drawdown a mix of TFC and taxable. It's no good having saved a pension not spending it just to avoid what may be a very small amount of tax.
Until this year expats could pay £180 a year voluntary class 2 for a full year’s NI.
How many care homes have you visited for parents?
Sadly you missed out. The 25% is calculated on the value as at the point you made/make the 1st drawdown. So hitting a peak value point gives you a high 25% value even if you only take a small amount.
Same, visited dozens, some seemed awful, some not suitable as MiL had a special wheelchair. These were converted houses and doorways plus lifts not suitable.
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.
