Re: Pension Options

Power to your elbow, Sir.

You won't know yourself. I now wonder where on earth I found the time to work.

Re: Pension Options

My Equity ISA is now producing more monthly income than one of my pensions. This is being reinvested to produuce more tax free income in the future.

Re: Pension Options

Dog Lover, you will at present rate get a tax Free allowance of £9400 per year, any thing you get over that you will pay 20% on the first £34370, 40% on £34371-150.000
State pension Basic is going to be around £110 per week approx £5500, so add on to that what you will be getting from you private pensions then deduct £9400, and what you have left you will pay tax on as above. Your state pension may include serps or this other second pension, so may be more than £5500 per year, but whatever, you will pay tax as above on anything over £9400.

Re: Pension Options

Not quite right - £9400 at present, £10,500 for people between the ages of 66 - 75. Any income over and above that should be taxed at 20% on the first £32,010 and 40% on income between £32,011 and £150,000. (Taken from my Notice of Coding, received this morning).

Re: Pension Options

Thanks guys but I won't be getting my state pension until 2019 when I will fall into the new flat rate of around £140 a week at the moment. I will have to pay tax at the basic rate I know on the amount in excess of my allowance but I don't want to be paying 40% on a much reduced income. I just hope they won't take too long to sort it all out but I have savings and the lump sums to tide me over the adjustment period.

Re: Pension Options

Oh to be in a position to pay 40%

Re: Pension Options

So your tax coding will be assessed on your income. Work that out and you will be able to calculate your tax yourself.

Simply pass that on to the tax office and the coding will hopefully be calculated. Just expect them to change it during the first year, as their system is geared up differently to common sense, apparently.