Re: Tax adjustment on retirement

Because you will be "retiring" before you are of state pensionable age Dog Lover I think I would make sure that the tax office are aware (in writing) in plenty of time before you finish work. Obviously the 20% tax will apply to your pension/s once you have reached your personal limit, but I would think they will need to know, in writing, what your pension income is likely to be, so they can re-code you correctly as quickly as possible. However, it may also be that they will take NI from your private pension/s. Even if you have enough years NI for a full o.a.p they do continue to take payments up to your normal o.a.p. retirement date and, although I am not sure, I think your pension/s could be considered as income for NI purposes.(Worth checking out). If you know what the amounts of your private pension/s will be I'd make sure to tell them, where, from and when the payments will be made. I'm not sure if you can opt out of the NI or not.

Re: Tax adjustment on retirement

Thanks Rena for your comments. I have sent a letter to HMRC anyway and am seeing my IFA tomorrow. I don't think I will have NI deducted from pensions as I think you have to be employed for that or self employed when you pay it yourself direct to HMRC, and I have paid in for over 30 years so will definitely qualify for my full state pension when I'm 65. I just want to be sure I can manage OK before I jump in and hand in my notice next April.