Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To be annoyed pensioners effectively now get a bigger personal allowance

446 replies

FlightBeforeXmas · 26/11/2025 14:07

So because of the fiscal drag from not increasing personal allowances the chancellor has announced basic state pension will not be taxable.
So if you earn this amount you pay tax on it despite having the extra costs of working.
Pensioners are also much more like to own their homes.
How on earth does this make any sense?

OP posts:
Gasp0deTheW0nderD0g · 27/11/2025 10:01

Oilofeveningprimrose · 26/11/2025 15:40

Worth remembering we won't get to retire anywhere near as early as you have because they slept on that and should have had a later retirement age introduced a long time ago. Originally people would only survive a couple of years post retirement. Current workers are funding long retirement for you that we wont get the benefit of

I agree that governments have been very slow to respond to changing demographics and reform pension ages, but you're not comparing like with like. When the state pension was introduced originally living to 70 was an achievement. Given that so many people died in their 60s or very early 70s you have to wonder how productive they were in their final years of work before reaching pension age. Those health problems probably didn't suddenly appear once they left the workplace.

Also, of course, almost all of them would have started working in their early teens when they left school. A man who left school at 14 and retired at 65 would have had 51 years of contributing to the tax system before getting his pension. Nowadays hardly anybody starts contributing before 16 and many only really start building up an NIC record in their early 20s. That's a big difference all in itself. OK, many graduates will earn more than an unskilled or low skilled worker of previous generations, so will contribute more, but by no means all graduates will earn more than the minimum wage, or any wage at all.

Nowadays people are far more likely to be in reasonably good health all the way through to their 70s and in many cases even their 80s. They will often start feeling a bit more tired in their 60s (I certainly have) but most people would be capable of working part-time at least at that age, although obviously it depends on the job.

Gasp0deTheW0nderD0g · 27/11/2025 10:03

Greenwitchart · 27/11/2025 09:47

It is sad to see what this country has become...

People turning on each other and trying to vilify pensioners, disabled people and immigrants for everything rather than aiming their anger at useless politicians and big corporations.

If you are lucky you will be old one day and you will appreciate having a decent income through a pension when you can no longer work.

Agreed.

Gasp0deTheW0nderD0g · 27/11/2025 10:10

Another point, which may well have been mentioned already (haven't read the whole thread) but bears repetition: the hated Boomers who got early retirement or even just retired at the age when the state pension became available to them are often doing a great deal to help both their own parents (caring, housework, cooking, financial admin, taking them to medical appointments) and their children (childcare, deposits for housing). I know there are many younger MNers who are very bitter about their parents not doing any of the above, but I don't think their parents are in the majority.

pigmygoatsinjumpers · 27/11/2025 10:13

Sharptonguedwoman · 27/11/2025 08:59

There's an interesting thread on FB called Shoestring Retirement, I think. It's illuminating reading. People living life very minimally, on very little cash. Even the homeowners struggle because of cost of repairs etc. Lots of folk with no private pensions at all.
Just a thought.

Indeed. Just because you've paid off the mortgage you still have maintenance costs on the house.

We live quite frugally but this last two years we've had to spend a considerable amount of money on maintenance and repairs to our house which was built around 46 years ago. For example, new tanks and associated plumbing in the loft; new fence posts and fencing along the boundary with the neighbours; central heating system and radiator repairs and general plumbing repairs, work by an electrician last week was another £120. Our perimeter fencing around the front and back garden all needs replacing. The cooker is around 16 years old and will need replacing soon. We needed a new fridge freezer a couple of years ago which would not have been economical to repair (it was only 7 years old). We still have the original late 70s kitchen units and these badly need replacing. Most of the house needs redecorating and my husband is now too frail to do this. I will be doing some of it but I can't tackle high stair wells. I can do minor plumbing and drains stuff and do most of the gardening. But a lot of the work he would have done on the house when he was younger and still able we now have to pay someone else to do.

Another source of cost that is often overlooked is lack of transport. My husband is no longer safe to drive and it costs over £90 for the round trip to one of our local hospitals and around £50 a round trip to get to the nearest one, 6 miles away. Many of the medical specialities that once had a department at our nearest hospital have been relocated to the hospital that is 14 miles away from us. A & E will also be relocated 14 miles away next year., instead of 6 miles away. There is no direct public transport service from our village and in any case, my husband's balance and mobility means he can't travel safely by bus. So every hospital appointment, some vaccinations, every dental appointment, opticians etc now incurs taxi fares at a cost of around £4 per mile. That can rack up, especially if he is in hospital, with visiting, taking him stuff and bringing him home.

He needs non prescription items that he has to pay for. That can rack up too. So if you get a month where you need to call a plumber out or an electrician or replace a fridge freezer or have a couple of hospital appointments or he's hospitalised the state pension does not stretch very far. Like everyone else, food and fuel costs have gone up, rates and water have gone up. Last April our pensions went up by around £24 each a month - that increase is very quickly wiped out by inflation and additional costs associated with being old and ill.

We are not all going on cruises.

lazyarse123 · 27/11/2025 10:14

123H · 27/11/2025 09:44

Agreed!

And, of course, those of us who have worked hard to buy our own (modest) home face the prospect of being forced to sell it should we need to go into a care home (God forbid). Average care home fees are currently running around £1k per week!

Perhaps the pensioner haters might consider what it feels like to have that prospect on your very near horizon … but no, let’s demonise pensioners instead!!!

Thank you. We did buy a house but have now downsized to a park home as we couldn't afford to keep it.
When I think of the stress that I had trying to keep it when dh wasn't in the right frame of mind to help I'm amazed I'm still here.
The bank were very helpful about the mortgage every time I rang with a different excuse for why I couldn't pay that month. We came very close to losing it more than once. They did eventually let us extend the mortgage which reduced payments that was a massive help.
I had intended working until 70 to pay the mortgage and get some savings, working and pension would have been amazing, but couldn't physically do it longer than 5 months.
We now have a park home that's paid for with a small ground rent. We still have no savings and are managing okay.
It's quite hurtful when people keep saying how easy we had it. If only. Sorry I know I'm ranting.

Sharptonguedwoman · 27/11/2025 10:17

pigmygoatsinjumpers · 27/11/2025 10:13

Indeed. Just because you've paid off the mortgage you still have maintenance costs on the house.

We live quite frugally but this last two years we've had to spend a considerable amount of money on maintenance and repairs to our house which was built around 46 years ago. For example, new tanks and associated plumbing in the loft; new fence posts and fencing along the boundary with the neighbours; central heating system and radiator repairs and general plumbing repairs, work by an electrician last week was another £120. Our perimeter fencing around the front and back garden all needs replacing. The cooker is around 16 years old and will need replacing soon. We needed a new fridge freezer a couple of years ago which would not have been economical to repair (it was only 7 years old). We still have the original late 70s kitchen units and these badly need replacing. Most of the house needs redecorating and my husband is now too frail to do this. I will be doing some of it but I can't tackle high stair wells. I can do minor plumbing and drains stuff and do most of the gardening. But a lot of the work he would have done on the house when he was younger and still able we now have to pay someone else to do.

Another source of cost that is often overlooked is lack of transport. My husband is no longer safe to drive and it costs over £90 for the round trip to one of our local hospitals and around £50 a round trip to get to the nearest one, 6 miles away. Many of the medical specialities that once had a department at our nearest hospital have been relocated to the hospital that is 14 miles away from us. A & E will also be relocated 14 miles away next year., instead of 6 miles away. There is no direct public transport service from our village and in any case, my husband's balance and mobility means he can't travel safely by bus. So every hospital appointment, some vaccinations, every dental appointment, opticians etc now incurs taxi fares at a cost of around £4 per mile. That can rack up, especially if he is in hospital, with visiting, taking him stuff and bringing him home.

He needs non prescription items that he has to pay for. That can rack up too. So if you get a month where you need to call a plumber out or an electrician or replace a fridge freezer or have a couple of hospital appointments or he's hospitalised the state pension does not stretch very far. Like everyone else, food and fuel costs have gone up, rates and water have gone up. Last April our pensions went up by around £24 each a month - that increase is very quickly wiped out by inflation and additional costs associated with being old and ill.

We are not all going on cruises.

Sending moral support in tonnes. Would you think of downsizing? Must be so hard.

pigmygoatsinjumpers · 27/11/2025 10:34

Sharptonguedwoman · 27/11/2025 10:17

Sending moral support in tonnes. Would you think of downsizing? Must be so hard.

Thank you.

We are fortunate in that we both have state pensions (but not the higher rate new state pension), my husband has a small private pension and we have some additional income from savings, though it's only been this last couple of years that higher interest rates have made these financially beneficial. My husband also earns a little extra from writing but may not be able to continue with this for much longer.

Regarding downsizing. We currently have a three bedroomed semi and we have an adult son living with us who has a long term condition and needs a certain amount of care from me. If we were to move, we would still need three bedrooms. We've been in this village for over 35 years and would prefer to stay here, despite the transport issues. This is a high property price area and although there are newer, cheaper houses in the village with three bedrooms after you factor in moving costs, legal fees, stamp duty plus the cost of bringing this house up to scratch before putting it on the market, it would not save us anything as there is only a price differential of about 25K.

Lunchcatastrophe · 27/11/2025 10:52

AutumnLeavesandKnittedJumpers · 26/11/2025 17:04

And a working person’s personal allowance is less than that.

Everybody’s personal tax allowance is the same, regardless of age - where on earth have you got the idea it isn’t?

It is estimated that by 2027 the state pension will exceed the personal allowance by a small amount. That would mean pensioners who receive only the state pension would owe a little under £5 per month in tax. It would cost much more than that to collect it and it therefore makes no sense to do so. It’s a pragmatic decision based on fiscal consideration, rather than a desire to be generous to pensioners.

Pensioners who have other income on top of the state pension will continue to pay tax on the portion above the personal allowance, at the same rate as any other person, as they have always done.

pigmygoatsinjumpers · 27/11/2025 11:00

I don't understand why AutumnLeavesandKnittedJumpers who has said on another thread that she has a law degree appears not to be able to accept what has been set out to her several times, now.

godmum56 · 27/11/2025 11:02

Papyrophile · 26/11/2025 20:41

Yes, the GP attended patients at home, even at night if they were ill enough. Until Tony Blair wrote them a contract that let them out of all those responsibilities. It was idiocy even at the time.

I used to attend GP meetings as part of my NHS job at that time. I remember the laughter.

YouveGotNoBloodyIdea · 27/11/2025 11:30

Papyrophile · 26/11/2025 15:54

When the standard state pension exceeds the tax threshold of £12,570, which is likely to be in April 2027, if your income is only the state pension, there will be a workaround that excuses your income tax on the amount above the threshold. But if you have an additional occupational pension, then income tax will be payable on everything over the threshold.

This. I only have the SP and two small private pensions totalling £400 a month. The private pensions are taxed at source, one at BR ant the other using whatever the appropriate code is. This situation won’t change, the SP uses up my tax allowance. If I were totally reliant on it then the few extra pounds it goes over the tax allowance will be disregarded. For that minority of pensioners who are totally reliant on SP it would simply cost more to claw back the money than to let it be.

my guess is that many (most?) of those people might also be getting pension credit? So it would be giving with one hand and taking with the other?

Lunchcatastrophe · 27/11/2025 11:47

pigmygoatsinjumpers · 27/11/2025 11:00

I don't understand why AutumnLeavesandKnittedJumpers who has said on another thread that she has a law degree appears not to be able to accept what has been set out to her several times, now.

Edited

I don’t think Autumn Leaves is interested in facts. She’s angry and bitter and just wants to rant about old people. I’d be astonished if her comprehension skills are genuinely that poor given her level of education.

Unfortunately it only takes one person on a thread like this to throw out a tasty little snippet of disinformation - in this case the preposterous claim that pensioners have a more generous tax allowance than anyone else - and then more people, perhaps genuinely incapable of working out it’s utter tosh, will start repeating it and in no time at all it becomes one of those things people are convinced is true no matter how many times you point out the reality of the matter.

pigmygoatsinjumpers · 27/11/2025 12:03

Lunchcatastrophe · 27/11/2025 11:47

I don’t think Autumn Leaves is interested in facts. She’s angry and bitter and just wants to rant about old people. I’d be astonished if her comprehension skills are genuinely that poor given her level of education.

Unfortunately it only takes one person on a thread like this to throw out a tasty little snippet of disinformation - in this case the preposterous claim that pensioners have a more generous tax allowance than anyone else - and then more people, perhaps genuinely incapable of working out it’s utter tosh, will start repeating it and in no time at all it becomes one of those things people are convinced is true no matter how many times you point out the reality of the matter.

Yep.

Substitute "disabled people" for "pensioners" and I wonder whether this thread would have been removed for "not being in the spirit of Mumsnet"?

I guess I'd better go and start packing for that cruise that those of us over pension age are always supposed to be taking...

Wot23 · 27/11/2025 12:25

BigAnne · 26/11/2025 15:44

Do you mean the SP won't be taxed even if you have additional income?

no, what posters have missed is the fact that the rule changes applies ONLY WHERE STATE PENION IS THE SOLE SOURCE OF INCOME

if that is the case then when the SP rises above the frozen personal allowance due to drag, such a pensioner will NOT pay income tax on the amount in excess of the personal allowance.

If a pensioner has other sources of income then the current situation continues, Total of all income (incl SP) less personal allowance = amount on which you will pay tax.

Exactly the same position for a person in work, so no this is not a great milksop to all pensioners, only a small number who have no other income and for then the tax savings will be pennies. I invite you to live on £12,000 a year and still state you are better off than a person still in work...

This thread seems to be based on ill informed envy posturing

pigmygoatsinjumpers · 27/11/2025 12:36

Wot23

"This thread seems to be based on ill informed envy posturing"

I agree, and this thread title needs editing.

"To be annoyed pensioners effectively now get a bigger personal allowance"

This is not the case. Several of us have pointed out that this is not the case but the frothing vitriol persists.

BigAnne · 27/11/2025 12:47

Wot23 · 27/11/2025 12:25

no, what posters have missed is the fact that the rule changes applies ONLY WHERE STATE PENION IS THE SOLE SOURCE OF INCOME

if that is the case then when the SP rises above the frozen personal allowance due to drag, such a pensioner will NOT pay income tax on the amount in excess of the personal allowance.

If a pensioner has other sources of income then the current situation continues, Total of all income (incl SP) less personal allowance = amount on which you will pay tax.

Exactly the same position for a person in work, so no this is not a great milksop to all pensioners, only a small number who have no other income and for then the tax savings will be pennies. I invite you to live on £12,000 a year and still state you are better off than a person still in work...

This thread seems to be based on ill informed envy posturing

Edited

I knew from the start the OP was wrong. I was hoping she would try to find evidence to support her claim and then realise herself that she was wrong.

surreygirly · 27/11/2025 12:54

TheRealMagic · 26/11/2025 15:52

If you think that working age people can all easily increase their incomes and that there are 'employers queuing up to offer work' for average workers then I think you live in quite a different economy to me. The argument about pensioners being on fixed income is always used, but it ignores the fact that many working people would see a fixed, guaranteed income as an absolute delight compared to the uncertainty of the job market!

When they become pensioners they will have a fixed income
My parents are pensioners
hey were around in the 1980's when there was a severe recession and mass redundancies
No one was queuing to give people well paid jobs
My parents worked all their lives in their own business
Employed people who were able to pay their own mortgage and support a family
Paid a fortune in personal and corporation tax
So you resent them getting 12k state pension

Lincslady53 · 27/11/2025 12:55

AutumnLeavesandKnittedJumpers · 26/11/2025 17:12

I have worked in some capacity since age 13.

when you were working house prices were, on average, 3.5x the average wage. The cost of living was a lot lower. You could survive on one income.

house prices are now 10 times the average salary.

And interest rates were 3 times what they are now. Today people worry about high interest rates at around 4%. We dreamt of that being a low rate. For most of the time we were paying our mortgage rates hovered around the 8% to 10% level, hitting 17% at one stage. House prices really took off when interest rates were kept low for long periods

Lincslady53 · 27/11/2025 13:09

BIossomtoes · 27/11/2025 08:48

what are pensioners saving 20k of cash a year for anyway?!

Care home fees.

And other health. Glasses, simple lenses no good now, so need varifocals, not the basic, but the more expensive, so around £500. Hearing aids, mobility aids, dentists- I have a bridge which has done well for 40 years, when it next fails I have been advised to consider an implant - not for cosmetic reasons, but so I can eat - a few thousand pounds. Then we need to allow for having to pay tradespeople to do work we have always done. It's not cheap, getting old.

ledmeup · 27/11/2025 13:18

Today people worry about high interest rates at around 4%. We dreamt of that being a low rate.

They worried about 5% today because of the actual price…it’s how %s work.

Ezzee · 27/11/2025 13:28

AutumnLeavesandKnittedJumpers · 26/11/2025 17:21

Then save more when you’re younger. Stop with the lattes and the avocado on toast. Live without any joy or luxury.

You are either on the wind or are seriously taking the fucking piss!
You are paying for the pensioners, they have lattes and avocado fuck off these things are your generation as is the entitled attitude!
They paid their dues.
You seem to think life in the 50's and 60's was easy... do your research it was fucking hard.
My Mum is retired and deserves what she havs, my Mum worked 10 years past her retirement for the police to put money in a pension and yes now does go on a cruise or 2 BUT she worked from the age of 14 full time, till 70!

Seymour5 · 27/11/2025 13:49

@Woollyguru I’m late 70s now, and have volunteered, in different ways,for years. I also go to the local leisure centre, where as well as exercise, I can meet up with a group of friends for coffee. I used to help out with the DGC a bit when they were small, but they’re all bigger than me now!

I'm currently recovering from major surgery, so everything is on hold. I’m not allowed to drive yet, but I hope to be getting there by Christmas. If your health is reasonable, retirement can be great, even on a budget. The angst about people saving £20k a year made me smile, that’s about our income!

Sexentric · 27/11/2025 13:55

Ezzee · 27/11/2025 13:28

You are either on the wind or are seriously taking the fucking piss!
You are paying for the pensioners, they have lattes and avocado fuck off these things are your generation as is the entitled attitude!
They paid their dues.
You seem to think life in the 50's and 60's was easy... do your research it was fucking hard.
My Mum is retired and deserves what she havs, my Mum worked 10 years past her retirement for the police to put money in a pension and yes now does go on a cruise or 2 BUT she worked from the age of 14 full time, till 70!

Edited

Sorry what? I have no idea what you're saying here

Twinkletoes127 · 27/11/2025 13:59

RampantIvy · 26/11/2025 15:29

It was reinstated. I have had mine.

It was never taken. It just changed to means tested... but farage et al wouldnt mention that bit obvs

pigmygoatsinjumpers · 27/11/2025 14:08

Lincslady53 · 27/11/2025 13:09

And other health. Glasses, simple lenses no good now, so need varifocals, not the basic, but the more expensive, so around £500. Hearing aids, mobility aids, dentists- I have a bridge which has done well for 40 years, when it next fails I have been advised to consider an implant - not for cosmetic reasons, but so I can eat - a few thousand pounds. Then we need to allow for having to pay tradespeople to do work we have always done. It's not cheap, getting old.

Edited

And by the way AutumnLeavesandKnittedJumpers I am 73; I have never eaten avocado on toast.

I have, however, used 15K of our savings to pay for a private hip replacement (which will have saved the NHS money) and my husband has a private hearing aid (again, saving the NHS money).

As Lincslady53 has said, growing old can be expensive.

Walking canes, rollators, indoor walkers, bath boards, bath stools, perching stools, toilet frames, commodes, a folding wheelchair, incontinence products; between the two of us, we've needed all of these in the last five years. Now, we are probably looking at a Stannah type stair lift in a few months time or furnishing a downstairs bedroom. Just as well we have some savings...