UK pensions

[nontabury]

If you only get the state pension then you will not pay tax as your personal allowance is higher than your state pension.

And your state pension is always paid without tax being stopped. However, the state pension is still taxable income and tax will be stopped from your other income source if your combined incomes exceed your personal allowance.

I do not know where you get that from. My pension is not far from the personal allowance and I was nowhere near being a high earner. There will be a lot on state pensions above the personal allowance.

He's referring to the STATE pension. If you are receiving a state pension near the personal tax allowance rate

You are doing very well.

[evadgib]

With the new Pension scheme in place from April 2016, I requested a new forecast for my Pension due 2018.

My Pension breakdown is now thus;

44 qualifying years.

Pension plus SP2 total £183.14 per week.

Less 8 years COPE (Contracted out Pension Equivalent) @ £4.70 per week for each year.

Total Pension payable £145.54 per week.

The new rules to reduce Pensions by years contracted out also applies to the older scheme.

In contrast, a friend already retired and in receipt of his Pension before April 2016, gets £150 a week, with only 32 qualifying years and 6 years contracted out, because the new rules don't apply to him, only those who retire from April 2016.

It's apparent to me that the new flat rate State Pension of £155.65, isn't going to cost the government anything.

They're robbing Peter to pay Paul, and probably with change left over.

My State Pension F/E (Forecast/Estimate) arrived yesterday stating that I (mid 50's) have 30 qualifying years which they estimate will generate GBP 120.07 per week when I reach the required age. They also say I have an extra GBP 53.15 thanks to COPE, bringing me a total of GBP 173.22 p/w from the age of 66 and 6 months.

TBH I haven't yet fully understood everything in the letter or accompanying leaflet but it appears that despite the above I'll still need to pay a further 5 years of class 2* NI @ GBP 2.80 p/w. As a War Pension recipient I suspect there could be some leeway ('Certain state benefits') but, for the cost of a lottery ticket per week I'm content at resuming payments via direct debit/UK a/c.

Link to the leaflet:

Your State Pension statement explained

(*Self Employed/Living Abroad)

Edited June 17, 2016 by evadgib

[lungbing]

If you only get the state pension then you will not pay tax as your personal allowance is higher than your state pension.

And your state pension is always paid without tax being stopped. However, the state pension is still taxable income and tax will be stopped from your other income source if your combined incomes exceed your personal allowance.

I do not know where you get that from. My pension is not far from the personal allowance and I was nowhere near being a high earner. There will be a lot on state pensions above the personal allowance.

With a personal allowance of 11,000 for 2016-2017 you would have to have a state pension of over 211 pounds to pay tax on it. I doubt if there are a handful on that much, if any at all. (State pension, not private, company or annuities)

[Rajab Al Zarahni]

Some time ago I researched the maximum weekly pension achievable from the state including the basic pension, graduated pension and SERPS ( syn:SP2 and Second State Pension).

The figure came to just a touch short of £270/week. I suspect that the number who get this amount would be very few.

[nontabury]

Some time ago I researched the maximum weekly pension achievable from the state including the basic pension, graduated pension and SERPS ( syn:SP2 and Second State Pension).

The figure came to just a touch short of £270/week. I suspect that the number who get this amount would be very few.

That's amazing,especially to someone like myself,who after paying NI for 44yrs receives less than £100 per week.

[Rajab Al Zarahni]

Some time ago I researched the maximum weekly pension achievable from the state including the basic pension, graduated pension and SERPS ( syn:SP2 and Second State Pension).

The figure came to just a touch short of £270/week. I suspect that the number who get this amount would be very few.

That's amazing,especially to someone like myself,who after paying NI for 44yrs receives less than £100 per week.

Achieving the maximum amount would also depend on you being a high earner throughout your history of employment. Higher earners pay an elevated level of NI contributions.

Additionally you would not have have been a member of a "contracted out" pension scheme throughout your employment history.

I have never come across anyone who has achieved the maximum theoretical figure.

[Rajab Al Zarahni]

The latest figure, assuming your retirement date was before the 06.04.2016 is £281.66. This figure is based on a basic state pension of £119.30/week and additional state pension of £164.36.

[nong38]

The latest figure, assuming your retirement date was before the 06.04.2016 is £281.66. This figure is based on a basic state pension of £119.30/week and additional state pension of £164.36.

We will need to leave the EU to fund those sort of rates from the savings of non EU bound contributions!

[i claudius]

Some time ago I researched the maximum weekly pension achievable from the state including the basic pension, graduated pension and SERPS ( syn:SP2 and Second State Pension).

The figure came to just a touch short of £270/week. I suspect that the number who get this amount would be very few.

very close and i was not a very high earner .

[nontabury]

The latest figure, assuming your retirement date was before the 06.04.2016 is £281.66. This figure is based on a basic state pension of £119.30/week and additional state pension of £164.36.

Where does this additional state pension come from? What sort of contribution were paid in and for how long.

Guessing,to obtain this amount from a personnel pension, you would need a pension pot of somewhere around £140,000.

[Rajab Al Zarahni]

The latest figure, assuming your retirement date was before the 06.04.2016 is £281.66. This figure is based on a basic state pension of £119.30/week and additional state pension of £164.36.

Where does this additional state pension come from? What sort of contribution were paid in and for how long.

Guessing,to obtain this amount from a personnel pension, you would need a pension pot of somewhere around £140,000.

From graduated pension and SERPS ( syn:SP2 and Second State Pension). The figure of £164.36.00 assumes a full contribution record.

[sandyf]

If you only get the state pension then you will not pay tax as your personal allowance is higher than your state pension.

And your state pension is always paid without tax being stopped. However, the state pension is still taxable income and tax will be stopped from your other income source if your combined incomes exceed your personal allowance.

I do not know where you get that from. My pension is not far from the personal allowance and I was nowhere near being a high earner. There will be a lot on state pensions above the personal allowance.

With a personal allowance of 11,000 for 2016-2017 you would have to have a state pension of over 211 pounds to pay tax on it. I doubt if there are a handful on that much, if any at all. (State pension, not private, company or annuities)

I got my state pension in 2012 at £192/week and I know many got much more than that, some around £250 mark.

[sandyf]

If you only get the state pension then you will not pay tax as your personal allowance is higher than your state pension.

And your state pension is always paid without tax being stopped. However, the state pension is still taxable income and tax will be stopped from your other income source if your combined incomes exceed your personal allowance.

I do not know where you get that from. My pension is not far from the personal allowance and I was nowhere near being a high earner. There will be a lot on state pensions above the personal allowance.

He's referring to the STATE pension. If you are receiving a state pension near the personal tax allowance rate

You are doing very well.

Why do you automatically assume people are stupid, of course I was referring to my STATE pension.

[Johnniey]

I was just about to pay back up to 10 years of class2 contributions if possible.

I am Scottish, would it be wise to wait to see if Scotland becomes independent? Would that affect my pension considerably?

[Eclipse]

I was just about to pay back up to 10 years of class2 contributions if possible.

I am Scottish, would it be wise to wait to see if Scotland becomes independent? Would that affect my pension considerably?

Ask Nicola Sturgeon.

I suspect she will be going for independence soon.

And will probably get it.

[i claudius]

I was just about to pay back up to 10 years of class2 contributions if possible.

I am Scottish, would it be wise to wait to see if Scotland becomes independent? Would that affect my pension considerably?

Ask Nicola Sturgeon.

I suspect she will be going for independence soon.

And will probably get it.

For Scotlands sake i hope they dont , oil running out , and the E.U if it survives , will not subsadise ,free prescriptions ,free university places , etc like westminster does .

[chiang mai]

I was just about to pay back up to 10 years of class2 contributions if possible.

I am Scottish, would it be wise to wait to see if Scotland becomes independent? Would that affect my pension considerably?

If it was me I would, the very worst that could happen is he British gov. could decide not to pay cost of living increases but that seems highly unlikely, it's a good investment that can be paid regardless of where you live.

[evadgib]

Will our numbers swell as a result of any Brits living in Europe joining the club post brexit or will HMG add us to any amnesty prior to finalising the divorce?

Edited June 25, 2016 by evadgib

[JetsetBkk]

If you only get the state pension then you will not pay tax as your personal allowance is higher than your state pension.

And your state pension is always paid without tax being stopped. However, the state pension is still taxable income and tax will be stopped from your other income source if your combined incomes exceed your personal allowance.

I do not know where you get that from. My pension is not far from the personal allowance and I was nowhere near being a high earner. There will be a lot on state pensions above the personal allowance.

He's referring to the STATE pension. If you are receiving a state pension near the personal tax allowance rate

You are doing very well.

Why do you automatically assume people are stupid, of course I was referring to my STATE pension.

Your state pension is near 10,000 GBP ???

[GuestHouse]

I think we can all say goodbye to any hope we had of the injustice of frozen pensions being put right.

The UK government us going to be somewhat distracted by more pressing matters.

UK pensioners in Thailand will have to hope for a strong pound instead.

[rijit]

^^ and there Is absolutely no chance in hell.of that happening. Ide say get prepared for a 35 bht to the pound.

Sent from my GT-I9000 using Thaivisa Connect Thailand mobile app

[denby45]

I was just about to pay back up to 10 years of class2 contributions if possible.

I am Scottish, would it be wise to wait to see if Scotland becomes independent? Would that affect my pension considerably?

1. You can only back pay up to 6 years.

2. Class 2 NI contributions is being phased out soon and you will have to pay the more expensive class 3 so get in there now.

3. It is very well worth it even if you are forced to pay the class 3 for any future contributions.

4. I fully believe that the new Scottish government (if it happens) would meet your obligations and you would not lose out.

So basically I would go for it if I were you

Den

[i claudius]

^^ and there Is absolutely no chance in hell.of that happening. Ide say get prepared for a 35 bht to the pound.

Sent from my GT-I9000 using Thaivisa Connect Thailand mobile app

In your dreams,its not going to happen ,as much as you may wish it

[orientalist]

I was just about to pay back up to 10 years of class2 contributions if possible.

I am Scottish, would it be wise to wait to see if Scotland becomes independent? Would that affect my pension considerably?

1. You can only back pay up to 6 years.

I think he may be talking about paying up contributions from 2006 until 2016, as some of us can if we were born before 5 April 1951.

[Rajab Al Zarahni]

The pound has dropped to a 31 year low and the man who cuts his own hair has stated reassuringly that there is no rush to leave the EU, the pound is stable and that pensions are safe.

The moral of the story must be never to trust a man with no hairdresser !

[billd766]

I see that Cameron is now saying that a Brexit might threaten the affordability of current UK pensions ?

http://www.bbc.com/news/uk-politics-eu-referendum-36509931

"We've made a special effort to protect pensioners," he said - highlighting the "triple lock" which says the state pension will rise in line with earnings, inflation or by 2.5%, whichever is higher, and the protection of bus passes.

"We did all this in the expectation of a growing economy. But if we had a big black hole, we could struggle to justify this special protection any longer.

"In fact, even if we could justify it morally, it wouldn't actually be affordable," he said."

As always he seems to deliberately forget, that many overseas pensioners already suffer a pension-freeze, due to where they live.

So much for his "special effort to protect pensioners" !

Of course he could ALWAYS cut the budget for foreign aid and give that money to the pensioners.

However the pensioners are just British citizens who have paid into the system all of their lives and wouldn't spend the money in the UK, whereas the foreign aid budget is given to countries who no longer have a "special" relationship with the UK, and, what a surprise will spend the foreign aid money in their own country and not in the UK.

[billd766]

Some time ago I researched the maximum weekly pension achievable from the state including the basic pension, graduated pension and SERPS ( syn:SP2 and Second State Pension).

The figure came to just a touch short of £270/week. I suspect that the number who get this amount would be very few.

My state pension is about 1/3 of that even having paid contributions for 44 years.

Edited June 27, 2016 by billd766

[theoldgit]

As always he seems to deliberately forget, that many overseas pensioners already suffer a pension-freeze, due to where they live.

Of course he could cut the budget for foreign aid and give that money to the pensioners.

However the pensioners are British citizens who have paid into the system all of their lives and wouldn't spend the money in the UK, whereas the foreign aid budget is given to countries who no longer have a "special" relationship with the UK, and, what a surprise will spend the foreign aid money in their own country and not in the UK.

Given that HMG have always said that pensions would only be updated when there is a legal obligation to do so, it could possibly mean that in the future pensions for British pensioners living in the EU would not be able to uprated in the future.

We're told that it was the grey vote that swung the Brexit result, there couldn't be the possibility of some punishment being meted out could there?

[nontabury]

As always he seems to deliberately forget, that many overseas pensioners already suffer a pension-freeze, due to where they live.

Of course he could cut the budget for foreign aid and give that money to the pensioners.

However the pensioners are British citizens who have paid into the system all of their lives and wouldn't spend the money in the UK, whereas the foreign aid budget is given to countries who no longer have a "special" relationship with the UK, and, what a surprise will spend the foreign aid money in their own country and not in the UK.

Given that HMG have always said that pensions would only be updated when there is a legal obligation to do so, it could possibly mean that in the future pensions for British pensioners living in the EU would not be able to uprated in the future.

We're told that it was the grey vote that swung the Brexit result, there couldn't be the possibility of some punishment being meted out could there?

Punish by whom?

[HenryB]

^^ and there Is absolutely no chance in hell.of that happening. Ide say get prepared for a 35 bht to the pound.

Sent from my GT-I9000 using Thaivisa Connect Thailand mobile app

I think that wishful thinking we shall it at 27 baht to a Pound very soon