Pension shock.

[Morethanithought]

I decided to carry on working as I enjoy my small part time job - and just received my state pension - I didn’t defer it - I knew I would be taxed but didn’t expect quite so much taken off me.I am a single woman- my tax is usually £60 but it was £290 this month. Obviously I am still better off this month but work colleagues are saying I am crazy not to finish now. If you are still working after pension age - is your tax higher than you thought?

As i still work part time my tax each month is around £100 a month

"In 2024/25 the standard tax-free personal allowance is £12,570, which means that if you receive the full new State Pension, you will have £1,067.60 (£12,570 less £11,502.40) of your personal allowance remaining for other taxable income streams, such as employment or a private or occupational pension."

Does that help you work it out? ie anything you earn from anywhere over the £1067 will be taxed at the rate you usually pay, as your pension is the untaxed bit.

Check your tax code though to make sure it's correct.

I've carried on working even though I could have retired in April 2023.

More for something to do. Gets me up and out of bed etc.

Tax is what I expected. At 40% as well but I knew that even though I went to 4 day week in January.

I didn't defer my pension. when I registered to claim it I took it straightaway as if I died it would disappear. I thought the after-tax amount was better off in my bank account for my wife than losing altogether.

Sadly, things didn't work out quite as planned as my wife passed away in January. I thought I'd go first.

Like I said, I wouldn't recommend defering, as if you die before claiming it's gone.

@billyt Thanks for that - work is not about the money for me - it’s about enjoying what I do with people I really like. I was widowed and have enough time on my own. I would rather the tax came off my state pension as it’s not such a shock when I look at my pay statement. I know I am lucky as I do still have money left at the end of the month and am happy I have not deferred.
I am sorry about your loss- and the loss of the life you planned together.

Im very sorry for your loss @billyt