Do You Pay Tax On State Pension

Are you curious about the tax rules on state pensions in the UK? This video is your ultimate guide, revealing how these tax regulations could affect your retirement funds. Discover the essentials of pension taxation and how you might be able to save money through careful planning.

Pensions are a key source of income for many retirees in the UK. This video delves into whether state pensions are subject to income tax and how much you might expect to pay. It discusses the differences in taxation based on your total income, including both the state pension and any additional pension benefits.

Understanding the tax-free allowance and how it applies to your pension can significantly impact your finances during retirement. We break down the personal allowance threshold and other deductions that might apply to you as a senior citizen in the UK, aiding you in better managing your retirement income.

We'll walk you through the official HMRC guidelines on pension income and tax deductions. Plus, the video includes expert advice on financial planning to make the most of your pension funds and potentially reduce your tax liability.

Watch to uncover valuable strategies to maximise your pension benefits and minimise taxation. By the end of this video, you will have a clearer picture of HMRC pensions regulations and the actions you can take to ensure your financial stability in retirement.

Actionable Steps to Maximise Your Pension Benefits

Understand how your total income affects your tax rate.
Learn about your tax-free personal allowance.
Consider financial planning services to better manage retirement funds.

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[jackmchammocklashing]

I served in the Royal Navy and received a small pension, along with my state pension (lower rate) I pay tax
Why did I or anyone else bother, when if you contributed NOTHING you get a higher state pension tax free and Pension credits that take you above whatever I received

[barryh.]

At 67 years old, i am paying tax on my pension, but after working all my life since 15 years of age and paying thousands in tax already, i'm definitely not happy with it!

[Annie-yvrc]

The personal allowance should go up so pensioners don’t have to fill out SAForms and get fined. You can’t talk to anybody at Hercules and you can only fill in the form online something older people struggle with

[ldewproductions]

All my working life my earnings were taxed. I also paid National Insurance for my future pension which was taxed. Now I receive tthat pension I am taxed. That income is being taxed twice. Such a rip off.😊

[philipbant]

They add it to your private pension(if you have one) then tax the sum over and above £12550.00.
My tiny private pension is just £150.00 a month. Last taxable year I actually got just a half £75.00 I will get even less this year as my state pension has increased slightly.
Why did I bother.?

[Kaltybean]

It’s a disgrace that I’m still paying tax at 72 years old .

[Carlos]

My state pension is now £12, 619.62 a year this is because I paid extra pension contributions and didn’t opt out, I have been informed by inland revenue that I will have to pay tax on £49.62 of my pension, I myself am 67 and have worked since I was 15 without ever claiming any benefits, so much for playing the game.

[freeserve]

The ‘Killer’ is the freezing of the personal tax allowance extremely unfair to Pensioners. Thank you Rishi we won’t forget come 4th July !!

[rlittlewood]

I have to pay 50% of my private annuity I, m Sick Sick of it

[paultaylor]

The current Personal Income Tax Allowance in the UK has been frozen at £12, 570 since 2021 and is forecast to stay at that level until tax year 2027/28, unless altered. The current Basic State Pension for those receiving the full amount, after a minimum of 35 years payment of NI, is around £11, 500, so currently you're not taxed on it. however, if you have an Occupational Pension or Private Pension and you wish to draw and annuity on it, once youe total income goes over the £12570 limit, you'll pay Income Tax on it. Some people who paid extra contributions to their NI get slightly more, so some of these unfortunates are paying Income Tax on just their State Pension, but not a large sum. Somehow when setting the levels of Income Tax Personal Allowance and State Pensions, it was ever intended that peope on hte basic State Pension would be paying Income Tax on it.

[Chatterisdotbiz]

HMRC deduct the gross state pension amount off your personal allowance meaning you get a new tax code which is used against any other occupational pensions, I’m so glad I reduced my monthly occupational pension by commuting the maximum amount, otherwise I would be paying even more tax for the government to squander.

[rogernaylor]

I'm 77, I started work at 15 and payed N I until I claimed my pension at 65, 50 years, N I is supposed to contribute to your state pension so why am I contributing twice, N I and now tax

[davebrown]

Do not bother with a personal pension, unless you like funding the treasury, better to live on State Pension and get shed loads of pension credits take as much equity out of your property or the bastards will have that as well

[jacig]

Uk state pension i believe is the lowest amount in Europe. A rip off when you've worked all your life. Simply no reward!

[sidsod]

The state pension should not be included in your tax allowance, any other income over and above the tax threshold is another matter.

[twitchsolace]

I am paying tax on mine. Plus Mr starma has just stated that pensioners will face a 3 figure sum every year from pensioners why do these lousy scum keep targeting the elderly lousy disgrace and I will push every chance I get for reform UK I'm sure the elderly will also I reckon we have all had enough of this injustice from greedy scum politicians

[johnrockley]

Years ago, I remember when my old Mum was 84 and her notice of coding arrived, she wasn't being paid the 'over 80' additional allowance of 25p. I contacted HMRC and she got back pay. They know pensioners date of birth, I wonder why it was missed?
Does it still happen? Of course she got hammered for additional tax, but it was still worth claiming. I'm only 78 and pay BR rate on one of my pensions, if I live long enough I'll make sure I get my extra 25p when I'm 80! I started work at 15 was very lucky to have paid into a pension and often 60 hour weeks have made me feel so fortunate to be able to still contribute to the tax system, after all I still enjoy the benefits it provides. I'm on a great bit of the 'rock' for sure, I'm so lucky.

[SeanDoherty-ghco]

We must be the most taxed people in the world not just tax on your income taxed on everything the only thing that was not taxed use to be the air we breav it is now

[andrewrose]

Pensions are taxed as earned income. In addition to the State pension, employees have the option to join a company scheme with all the taxablebenefits included. Some choose to opt out, making them solely reliant on the state scheme. The ability to opt out, without reference to advice, is one of the reasons for pension poverty.

[tonyboat]

The government gave us a increase in april without increasing the £12.570...with that i am now paying TAX on the extra they gave me ....having just turned 70, the car insurance went up along with every thing else, ,,, like most of the posts here i started work at 15 and also served in the RAF for 5 years plus 43 years at a builders merchant`s ... and trying to find a NHS DENTIST 😢😢😢😢