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Topic: Re:Taking my State Pension - help please !
Posted by: Phil Kay
Date/Time: 08/05/15 18:00:00

Maggie - doing the numbers is not too difficult, depending on whether your income is likely to change much over the next 1 to 5 years.

If you are a basic rate tax payer (20%) and taking your pension will not push you into the higher rate (applied to annual earnings of 31,786 or more), then you can easily work out how much additional tax you will need to pay.

Since you are already using your full tax allowance, you will pay 20% of your pension as tax.

National Insurance is not deducted from those of state pension age.

If you choose to take a lump sum, you would pay 20% tax on that amount plus normal earnings up to 31,785, and 40% on the rest.

If you do these sums for each of the next 5 years, you will see when it makes the most sense to take your pension.

I believe 5 years is the longest period for which a state pension can be deferred.

This can then be compared to how much you would have received and been taxed over the 1 to 5 years if you defer the pension.

I did the calculations for my Uncle a few years ago, which showed that he would have to live until at least the age of 78 to make the deferral worthwhile, in simple money terms. He decided to take the money and lived to 92. I'm sure there's no link though.


Entire Thread
TopicDate PostedPosted By
Taking my State Pension - help please !08/05/15 15:48:00 Maggie Dodge
   Re:Taking my State Pension - help please !08/05/15 16:12:00 Richard Greenhough
      Re:Re:Taking my State Pension - help please !08/05/15 16:29:00 Vanessa Smith
   Re:Taking my State Pension - help please !08/05/15 16:25:00 Jonathan Bingham
      Re:Re:Taking my State Pension - help please !08/05/15 17:01:00 James Roy
         Re:Re:Re:Taking my State Pension - help please !08/05/15 17:07:00 Maggie Dodge
            Re:Taking my State Pension - help please !08/05/15 18:00:00 Phil Kay
            Re:Re:Re:Re:Taking my State Pension - help please !08/05/15 18:15:00 Robert Fish
               Re:Re:Re:Re:Re:Taking my State Pension - help please !08/05/15 19:46:00 Andy Pease
                  Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !08/05/15 20:48:00 Maggie Dodge
               Re:Re:Re:Re:Re:Taking my State Pension - help please !08/05/15 20:56:00 Maggie Dodge
                  Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !08/05/15 23:58:00 Mark Perry
                     Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 08:17:00 Maggie Dodge
                        Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 08:36:00 Micki Hawkes
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 11:33:00 Maggie Dodge
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 11:56:00 Gerry Tan
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 11:35:00 Stephen Gould
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 12:58:00 Sam Hearn
                                 Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 19:36:00 Maggie Dodge
                                    Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !09/05/15 21:52:00 Jill Merrett
                                       Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !10/05/15 07:36:00 Micki Hawkes
                                          Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !10/05/15 07:42:00 Micki Hawkes
                                             Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !10/05/15 09:35:00 Maggie Dodge
                                                Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Taking my State Pension - help please !10/05/15 17:01:00 James Roy
                                                   IDS to re-brand the state pension12/05/15 08:14:00 Janine Jarvis
                                                      Re:Stop the Tory Bashing lies - NOW12/05/15 09:14:00 Sam Hearn
                                                         Re:Re:Stop the Tory Bashing lies - NOW12/05/15 09:20:00 Maggie Dodge
                                                            Re:Re:Re:Stop the Tory Bashing lies - NOW12/05/15 11:45:00 Lou Valdini
                                                         Re:Re:Stop the Tory Bashing lies - NOW12/05/15 11:55:00 James Roy
                                                         Re:Re:Stop the Tory Bashing lies - NOW12/05/15 11:55:00 James Roy
                                                            Re:Re:Re:Stop the Tory Bashing lies - NOW12/05/15 13:22:00 Sam Hearn
                                                               Re:Re:Re:Re:Stop the Tory Bashing lies - NOW12/05/15 16:06:00 James Roy
                                                                  Deferring your state pension12/05/15 16:13:00 Bernard Allen
                                                                     Re:Deferring your state pension12/05/15 16:50:00 Sam Hearn
                                                                        Re:Re:Deferring your state pension12/05/15 17:09:00 Will Watson
                                                                           Re:Re:Re:Deferring your state pension12/05/15 17:41:00 Bernard Allen
                                                                              Re:Re:Re:Re:Deferring your state pension12/05/15 18:27:00 Chris Lucy
                                                                                 Re:Re:Re:Re:Re:Deferring your state pension12/05/15 19:38:00 Micki Hawkes
                                                                                    Re:Re:Re:Re:Re:Re:Deferring your state pension12/05/15 20:40:00 Sam Hearn
                                                                                       Re:Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 12:12:00 Will Watson
                                                                              Re:Re:Re:Re:Deferring your state pension12/05/15 22:01:00 Susan Kelly
                                                                                 Re:Re:Re:Re:Re:Deferring your state pension12/05/15 22:34:00 Bernard Allen
                                                                                    Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 09:49:00 Susan Kelly
                                                                                       Re:Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 11:49:00 Bernard Allen
                                                                                          Re:Re:Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 19:18:00 Susan Kelly
                                                                              Re:Re:Re:Re:Deferring your state pension12/05/15 22:10:00 Will Watson
                                                                                 Re:Re:Re:Re:Re:Deferring your state pension12/05/15 22:27:00 Bernard Allen
                                                                                    Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 09:27:00 Sam Hearn
                                                                                       Re:Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 11:43:00 Bernard Allen
                                                                                          Re:Re:Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 12:45:00 Sam Hearn
                                                                                             Re:Re:Re:Re:Re:Re:Re:Re:Re:Deferring your state pension13/05/15 20:45:00 James Roy
                                                                                                Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Deferring your state pension23/05/15 17:43:00 Joe Conneely
                                                                                                   Re:Deferring27/05/15 12:37:00 Maggie Dodge
                                                                                                      Re:Re:Deferring27/05/15 16:06:00 Joe Conneely
                                                                                                      Re:Re:Deferring27/05/15 16:26:00 Vanessa Smith
                                                                                                         Re:Re:Re:Deferring27/05/15 16:49:00 Micki Hawkes
                                                                                                            Re:Re:Re:Re:Deferring27/05/15 17:09:00 Maggie Dodge

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