The Retirement Thread

[SpokeyDokey]

That'll counterbalance the removal of the winter fuel allowance then.
It's not really a rise though, is it? It's merely catching up with inflation. A real rise would put us ahead.

Even worse is that the whole of the rise is taxed if you are getting any Additional State Pension that takes you above the Basic Tax Allowance to start with.

Thankfully we have my private pensions and investment/savings interest to live on. Produces a fair sized annual surplus which means we never have to touch our savings.

How anyone can live on a State Pension only is mind-boggling.

Neither of our kids have any serious private pensions so part of our legacy to them will be more than enough money to see them through their retirement years when we are no longer here!

The only concern is how Inheritance Tax is treated in years to come.

 

[screenman]

Take no notice of my last post, I did 20 minutes of yoga instead, just trying to get flexible enough to tackle the chore ahead, here I go.

 

[screenman]

Not bad, 16 minutes, a new record.

 

[Mo1959]

Not bad, 16 minutes, a new record.

Cover less duvet…….10 seconds.

 

[welsh dragon]

HMRC caught up with Mr WD last week. They sent him a nice letter telling him he owed them money for 2023 to 2024.

 

[welsh dragon]

I have returned. Wet and windy and dark and cold. Apart from that it's all hunky dorey.

Money spent. I brought a new pedal bin as well.

And I have a sandwich. What an exciting life I have.

 

[screenman]

HMRC caught up with Mr WD last week. They sent him a nice letter telling him he owed them money for 2023 to 2024.

Ouch! My accountants are working on my books at the moment, waiting for the numbers is a bad as going to the dentist, even though I have a rough idea. Hopefully my old age pension will match it and I can consider I have had a tax free year.

 

[Mo1959]

I have returned. Wet and windy and dark and cold. Apart from that it's all hunky dorey.

Money spent. I brought a new pedal bin as well.

And I have a sandwich. What an exciting life I have.

I went another wander before lunch. It’s seriously windy here now so feeling cold even in the sun.

 

[screenman]

Cover less duvet…….10 seconds.

I am using a kingsize, I am not sure one of them would fit in the washing machine.

 

[Mo1959]

Ouch! My accountants are working on my books at the moment, waiting for the numbers is a bad as going to the dentist, even though I have a rough idea. Hopefully my old age pension will match it and I can consider I have had a tax free year.

I am presuming when I start getting my state pension next year and go over the tax allowance, they will automatically deduct tax from it?

 

[Mo1959]

I am using a kingsize, I am not sure one of them would fit in the washing machine.

Possibly not unless it was a low tog one. I get a double in but I think it’s just 3.5 tog.

 

[screenman]

I am presuming when I start getting my state pension next year and go over the tax allowance, they will automatically deduct tax from it?

Not sure about that; I would have thought you might have to do a self-assessment form. I could be wrong, I pay accountants to do my tax returns, mind you I do have to check them and have found them missing things out before.

 

[screenman]

Possibly not unless it was a low tog one. I get a double in but I think it’s just 3.5 tog.

Do not forget I have southern blood in my veins, I have not got a clue what I have on there now; it must be due for a replacement soon, I would imagine a 10.5 has been used in the past, despite us having a warm house.

 

[Paulus]

I am presuming when I start getting my state pension next year and go over the tax allowance, they will automatically deduct tax from it?

I get taxed extra on my work pension. The tax code changed dramatically when I got the state pension. I got a letter from HRMI in forming me of the tax code change a couple of months before receiving the state pension.The personal allowance has stayed the same, but the state pension is classed as a second income. Although not taxed at source, the work place pension PAYE makes up the difference.
You only pay extra income tax at basic rate, unless you are or will be a higher tax payer. Initially it seems harsh, but it does work out in the end

 

[welsh dragon]

I am presuming when I start getting my state pension next year and go over the tax allowance, they will automatically deduct tax from it?

No. They will send a letter to you telling you A. That you owe tax. B. How much you owe as well .

You can either go online and pay or phone them and pay over the phone.

Either way, you don't have to do anything. They will contact you.