To be annoyed pensioners effectively now get a bigger personal allowance

[FlightBeforeXmas]

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?

My first was born in 71, the last in 1991. I still had more than enough contributions. Left school at 15 and stopped paying NI at 65, first group to hit 65 for SRP. So even after taking 5 years of reduced NI I still had ten years spare.

Sometimes we make the wrong choice, I could have stayed on the reduced NI for another ten years, no use fretting about it now, we made our decisions and live with them.

If I could turn the clock back if have more time as a SAHM but it can't be done.

tt's the same with everyone over 60 automatically qualifying for free TFL travel - this should be stopped, this culture of giving away free £ is mad - someone else is paying their fares MADNESS we should all be treated equal.

How can a private pension plus full state pension be less than just the full state pension?

If the private pension is very small it can be... As they would need to pay tax on the total amount over the threshold:

1. the amount of the state pension over the threshold
2. the private pension

Whereas those that have state pension only, will not pay any tax. Therefore, if the amount was small, those with state pension plus private pension would get less than those on state pension alone.

That's as I understand it- and the assumption is that pensions that ONlY have the state pension get the benefit of no additional tax above the threshold.

Ah, thanks.

Not everyone gets the full state pension!

Exactly, but we keep being told we don’t understand it. This situation is unfair.

For some, the reality of being an OAP is very different!

Then they will get pension credit?

So unfair

Not if they have over a certain level of savings

Looking after the elderly is a sign of a caring society, we really need to hold onto these basic pillars of humanity.

What circumstances do you not get the full state pension under? Is it when you haven't paid enough NI contributions?

Yes, though the missed payments can be made in some cases, but for others they can’t.

Is this in England?

Mainly older women, retired before 2016, who were SAHMs pre 1978, or paid reduced rate NI. The highest number of poorer pensioners are women on their own.

Younger generations have had far more info, plus the introduction of NI credits has helped.

I paid contributions for more than 35 years but get less than the maximum because I was in a contracted out scheme (i.e paid a lower rate of NI) for many years. Disclaimer - I have no complaints about this.

Presumably you get a higher works pension ?

I did get the feeling it wasn't planned well or thought out, it was more Oh Shit, what are we going to do, oh, we won't tax these people.

I don't think so, I was a civil servant so was in a final salary scheme and my pension is based on my final year's pay. I suppose I could have invested my NI savings but I didn't. I have no complaints about the pensions I get as I believe I've got what I paid for.

If you have a DC pension which you are not taking so it's not taxed because it's only taxed when you take it, if you don't take it surely the only pension you have for tax is the state pension so you could avoid paying tax on the state pension and still have a private pension sat there. It's probably only worth doing this if private pension is small

Those of us on the old state pension get less - sometimes much less - than the new state pension. So we will always tend to be under the personal tax allowance . I paid 45 years NI and my weekly state pension (old pension) is £198.45, well below my personal allowance.

I think a few people on the old state pension do have higher pensions, probably because of the ages of them they are generally men. My dad had quite a high old state pension because he had a lot of additions on it, SERPs was one of them

Yes

nope.