Keir's first day....

[CurlewKate]

Looks pretty good to me! What are people's thoughts?

I don't have a problem with the notion of my income, above the threshold, being taxable. I have become old enough to receive the state pension. And because I also had an absurdly successful pension deal negotiated on my behalf when a company I worked for went bankupt, a modest pot of benefits has turned into a modest bonus income. Between the two, I am about £500 into paying income tax. But once the mortgage was paid in full, we ploughed money into private pensions, which we haven't touched. It's not breaching the ceiling, especially between two parents and a child, but it will add roughly £30k pa to two state pensions. So of course, we should pay some tax on that income, and on interest on savings too. The uncertainty comes when capital gains tax starts being mentioned. Our home will be the new target. It has increased in value over 30-odd years, partly because we have improved it and inflation, plus the area becoming more sought after. Our council tax is already more than double my cousin's (much more valuable) house in Wimbledon. If we sell to downsize (quite apart from the lack of anything I want to buy), if we pay capital gains on our house, then there's SD:LT on the house we buy too, so I fear being zipped up coming and going.

There will be no CGT on the sale of a primary residence. This has been confirmed. Unless you have more than one house, you are fine.

ROFL.
Angela Rayner will be delighted.

The number of people peddling outright lies here in the last few days is really interesting.

I agree. People are just making up shit to scare people.

Me too. I have worked in the NHS over 30 years. Flexi retired due to ill health, will still have to work PT til late 60s. I get £800 a month.

Didn’t Miriam Cates lose her job ? Not that much of an appetite for US influenced religious conservatism up here.

That is a decent pension for early retirement.
The NHS pension scheme is much better than many private employer ones. Most people end up with small pensions.
The median average UK pension pot for those who are 65 and older: Male/female: £81,100
Average retirement income is £20,124 a year. But that includes state pension and any benefit entitlement like attendance allowance (equivalent of PIP), as well as private pensions.

@Papyrophile retired people already pay tax on income. They do not pay tax on state pension, but do on private pensions.

Pensioners pay tax on any income over the personal allowance 0 that includes the state pension. Mine is paid through my private pensions as it is nt taken from source i.e. my tax code is adjusted so my allowance is around £3000 - personal allowance less my state pension. Can we stop with this belief that state pension is tax free

I am feeling cautiously optimistic.

Public sector pensions are good because people pay a fair amount of their salary into them. Isn't the NHS Something like 10%? The police and local government schemes aren't far off that either nor is the civil service.

13% for NHS i think and then calculated on years worked it's not as "good" as people think

Plus in a private pension, you can, well we xan, pass the funds onto a spouse or children, there is no flexibility with NHS pension, plus you can't get it until pension age. Whereas you can retire before that privately.

Plus it's a very stressful job in the first place.

No doctor we know are advising their children to go into medicine. Isn't that interesting?

So no it's not a great pension if you compare like for like.

You could have equally as much, if you put in 13% especially with employer contributions on top, from your first wage packet, if not more, with greater flexibility and an option to access funds earlier.

It depends on your band. I am band 6 and pay 9.8%. I think you can take the pension early but you would get less.

As it stands, if the state pension in your only income, you do not pay tax on it.
If you have additional income that takes you over the tax-free allowance we all have, you pay tax on the money you earn over and above the tax free allowance.
So you are wrong to say you pay tax on the state pension unless it makes up a package with other income.

My H and his friends are at the age of talking pensions when out, thrilling I know, similar earnings, they have come to the conclusion the NHS pension is terrible! I get the highlights.....

So I am not sure why people hold it up as some great gold standard pension, when actually it isn't anymore.

But this is assuming that people are willing to salary sacrifice a decent pension for many many years, if you are prepared to do that then you have much more flexibility with a non-NHS pension

@Katypp

I'm not incorrect. Everyone has a personal tax free allowance. If your income is below the allowance no tax is due. State pension is below the tax free allowance therefore if it is your only income you will not pay tax on it - this would be the same if your income from work is below the allowance e.g, a student working part time. We tax income and the state pension counts towards overall income

I think you are splitting hairs here.
If your only income is the state pension, do you pay tax on this income, yes or no?

No. And I said that in my original post which was in reply to a PP who implied it wasn’t taxed.

However as tax allowances have been frozen there will be an issue in a couple of years when the state pension will be more than the personal allowance. This means that many pensioners will need to submit tax returns as they will be liable for tax and HMRC & DWP have no method of taxing at source. These will probably be the older generations before occupational pensions were easily available

Yes and I agree with you. That is an issue just a year or so away, assuming the triple lock remains and pensions continue to rise as rapidly.
However, as things stand, state pensions are tax free as long as they are the pensioner's only income.

That is true. But the NHS is currently paying 23.7% into pensions. Most employers pay the statutory minimum rate of 4%. So to get the equivalent I would have to pay one third of my income into the state pension. I am on low pay, I would starve if I did this.

On another note, how come Keir’s wife is accompanying him to the US? She seems to be with him a lot despite having a job! I doubt she’s using her holiday allowance so does she actually have a real job? I could never understand how Cherie Blair seemed to be able to take so much time out from her job as a barrister either!

It’s a bit like Eugenie and Beatrice who supposedly work but are always attending high profile social events during the day.

I'm guessing she must be on some kind of special leave of absence. It's a pretty good reason, don't you think?!

Yes it is but I can’t see many NHS trusts agreeing to let staff just take leave like that.

How many of them are married to the prime minister?!