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?

I agree that pensioners will do better than some, but many are also in a position to help others. Either younger family members or the wider community.

We are not all selfishly hoarding our wealth.

So show me where it says this. I'm a pensioner and my tax allowance is £12,570. What's yours?

Why don't you set out for us what has actually been said by the Chancellor, today?

I am enraged.

I am sick to death of them being handed everything. Every fucking thing is handed to them on a platter.

But your state pension is no longer taxable.

Like I’ve been shafted? No free child care for me when I had mine, pension age rose just as I was getting with spitting distance of it, I will have worked over 50 years by the time I get it, and I’ve paid in all that time. Every generation thinks they’ve got it the worse.

Instead of being "enraged" why don't you clearly set out what was said today in Parliament? You have a legal degree, yes?

@FlightBeforeXmas are you saying that state pension won't be counted as part of personal tax-free allowance?

That didn't come across to me at all, and I'm not convinced it's correct.

Fml it didn't take long for sticking the boot in to pensioners. State pension has never been taxed because it is less than the personal allowance.
But and this is the important bit pensioners will pay tax on anything above that allowance same as people who are still working.

Well of course it should. Obviously. And if it isn't its just a bribe for more pensooner votes. Nothing "fair" about it

It never has been. But is counted towards personal allowance.

Someone mentioned the winter fuel payment, which has sort of been reinstated. But it will now be on your tax record, so if your total pension / income is above the threshold it will be taken back in tax.

As regards the State Pension, it already IS subject to tax, it's just that so far, it's been less than the personal allowance. So if you have other pensions it is taken into account and your tax codes are adjusted.

Currently, there is no mechanism for deducting tax on the state pension itself. I have not studied the details, but I am assuming it means that if your only income is the state pension, the cost of adjusting it to take a minimal amount of tax, is probably not worth the effort.

WRT to the age difference in ISA allowance;

Possibly because to be confident of a better return on S&S ISAs you need to be able to invest for 5 years.

Pensioners might die or need the money quickly.

Many pensioners now will spend almost as long retired as employed.

Eh?

You have to have 35 years of NI contributions to get the full state pension. Average length of life after pension age of 66 is 21 years for women and 19 years for men.

Bashing the old again!!! Your time will be here soon enough!??

I've never witnessed so much frothing at the mouth and vitriol from posters who are unable to set out clearly what was actually said in Parliament, today.

The state pension isn’t taxed at source, it’s added to any other income you get and the total is taxed. So, if I get £10k pa Sp plus £10k pa private pension then my income is £20k and I pay tax on that £20k ( less the usual personal allowance) same as anyone else. If you only get the sp then it’s not taxed but it’s a tiny amount and not exactly living it large.

State pension is only not taxable because it’s not enough to be taxable - although actually it looks like it may just creep into being over the tax allowance soon pulling more pensioners into paying tax / but hey let’s pretend th pensioners are getting away with something so we can get angry and feel upset and hard done by

There must be an awful lot of younger people on Mumsnet that don’t have elderly parents or grandparents. I often think they are talked about like another species. No just older versions of themselves that started working at 16 and have worked continuously for 50 years.

I am allowed my own opinions, regardless of my education history.

I am sick to death of being shafted in order to pay state pensions. When I am at pension age it won’t exist!

My parents are older. My dad is a pensioner.

I feel the same way.

Only if that is your only source of income.

How about telling us what was actually said today that you are basing your opinions on?

Yanbu
As someone who is disabled, but not disabled enough for benefits, so works full time despite being to ill to live a good life I am just bone tired of being squeezed from every angle. Year after year of below inflation pay rises in the public sector , plus year after year of being asked to do more with less. Crap public services meaning I pay for tutors and dental care and hospital tests. Tax squeezes.

Its like being kicked about repeatedly while pensioners and those on benefits get more and more money

Exactly!

I am a pensioner. I have a works pension, which I paid into for 30 years. I started receiving my state pension aged 66.

My state pension is below the tax threshold but my total income (state + work pension) puts me above the threshold. Therefore tax is deducted from my work pension.

People who are existing on the state pension only, do not pay tax, as long as the state pension remains below the tax threshold. If, over the coming years, increases in the state pension put it above the tax threshold, then those people will pay tax on their state pension.

There’s no ‘two tier’ system of tax threshold for pensioners. We all have the same tax threshold - if your total income puts you above it … you pay tax.

I don’t mind paying tax. Please remember that most pensioners have worked, and contributed, for 40+ years before they receive their state pension!