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?

But you surely didn’t pay the full rate of NI and you have another pension.

You usually get out what you put in.

That is a little more than the Old Basic Pension, the basic rate for those who paid full contributions is £176.45. But for anyone retiring after April 2016, the New state pension based on full contributions is £230.25. Its all here:

https://www.gov.uk/browse/working/state-pension

Seems unfair.

Well then it must have been part time. I am paid under the old pension scheme and paid full NI contrIbutions but I also get SERPS because I was putting in sufficient.

Sorry, I meant you must have been working part time.
SERPS was replaced by the state 2nd pension

But if you didn't contract out you got SERPs or S2P and then your state pension, like mine, is higher than the new pension. With the new pension it will be a ceiling and won't go higher.

For people on the new pension they will need to have enough contributions without contracting out, I imagine that will take some years to work through

You’ve just repeated what I said.

If I’m thinking about putting a six figure sum down as a deposit some time in the next 24-36 months then I’m also not looking to invest long term.

by 2027 the (minimum) state pension under the triple lock will be 12,862
that means it is 12,862 - 12,570 = 292 above the (frozen) personal allowance

If you have no other income then you not have to pay 292 x 20% = 58.40 in tax
Instead you will receive the full 12,862 per year (£1,071.83 per month)

only those with a private pension of LESS than £73 PER YEAR will end up with a post tax income of less than someone without such a miniscule annual pension on top of the state pension. For example someone with an ANNUAL private pension of £72.50 would be 3 pence per month worse off due to paying tax compared to the state pensioner

in contrast someone getting a £74 PER YEAR private pension would end up being 7 pence per month better off than a pure state pensioner.

Doubtless there will be a few people with such piddling annual private pensions but the taxpayer cannot afford to spend vast sums on administering such a tiny number of people to make it utterly "fair" for all.

My husband and I get £35000 between us with our private pensions, £21540 is tax free as we both have £12570 personal allowance so we pay £1972 income tax per year. When we get our state pensions we’ll pay more tax on our personal pensions as we have this other source of income. I don’t think pensioners whose only source of income is their state pension will cripple the economy by not paying £58 income tax per year which is just over £1 per month.

Its not just about 'crippling the economy' though is it? Its about taxing everyone the same. Rather than (again) giving unfair advantages to the same group.

Do you earn £12570 per year?

£58 a year is an advantage most people could live with. I most certainly could, it would probably cost more to collect it.

How does that work?

I can only think the person has worked and paid into the pension scheme in both countries, in which case they would be entitled to two pensions.

if you think that state pension as your sole source of income is an unfair advantage then heaven help anyone looking to you for help.

Pensioners already do get a bigger personal allowance in a roundabout way, as they don’t pay NI, even if still working.

NI is just another tax and it is confusing and misleading to list it separately. It pays for benefits for people today, including state pensions and the NHS.

NI should just be rolled into general income tax and paid by everybody when over the threshold, including pensioners, landlords and those with passive income.

Since state pensions are counted as benefits, including by the government, if NI was charged on income from state pensions, it would also have to be charged on income from all other benefits.

People over SPA who continue working don’t pay NI either though.

Personally I think it would be dumb and pointless to deduct income tax (including NI) on the state pension, but income from private pensions, working beyond SPA, being a landlord (at any age) or investments is another kettle of fish. I’m not sure why it’s only the working population under SPA who are expected to pay NI to fund welfare and the NHS, especially as pensioners use the NHS more than other age groups.

This is a pointless comment. The state pe sion being your only income would only be comparable here to someone else whose sold income was at the same level.
And yes NI should be rolled into regular taxes and charged to anyone who pays

oh didums, don't like someone disagreeing with you?

Sorry what? Are you 10?

People who work over SPA should pay NI on their earnings.

It's very sad, but I have come to the conclusion that a huge number of posters here on MN hate pensioners and older people in general. Can anyone tell me why?

@PistachioTiramisu Im sure most people dont hate pensioners. Its just that the system is currently rigged against the young which people (understandably) resent. Situations like this where 2 people could potentially be bringing in.the same amount of.income but one would pay tax (and NI i guess) on it and one wouldn't jist because of their age really dont help.
And then older people dont seem to acknowledge the unfairness in a lot of cases, and you often hear people suggesting that if young people just worked a bit harder or didn't take a holiday/ buy coffees they'd be able to afford a house. When its clearly due to the fact that property prices have risen out of all proportion to wages.

This has nothing to do with young people. It’s one pensioner paying a tiny amount less tax than another pensioner. And as one of the pensioners affected by dint of already being a taxpayer, I don’t give a stuff if someone whose only income is the state pension doesn’t get just over £1 a week collected.