This makes me so cross!

I don't think it's fair to pay tax on all private pensions. I think the threshold should be higher. My mam and dad did without so that they could pay into the Superann scheme. I know they got a slight tax reduction when they paid it but now my mam seems to be punished for having been thrifty. She not only pays tax but also has to pay for the dentist. Her sister and BIL didn't save. They went out every weekend, had a car and had holidays in hotels. Now my aunt gets her rent and council tax paid and gets extra benefits that mam doesn't qualify for because they're means tested. For example although they both get the winter fuel allowance, my aunt gets an extra payment if the weather is below a certain temperature for seven days in a row. Mam doesn't get that payment even though she needs to keep warm too.

Shinamae, I too don't think it's fair to pay tax on pensions. It seems unjust to me to penalise those who have done their bit in life, only to find that they have money taken from them in retirement. This should be a time to kick back and relax, and enjoy the life that is left to us. Money shouldn't be taken from us like this in our Third Age.

Hithere the tax rates are lower now than they were when we, the older generation were both working.

Yes, both of us.

Teetime that is true. I'm not sure about private pensions, but the state pension, which is more generous than ours, is not taxed. However - and this is a very big however - it is means tested so not everyone receives it. Assets as well as other income are taken into account too, I believe.
If anyone emigrated to Australia years ago with a UK state pension, that is paid at the rate it was when they emigrated.

Those in the younger bracket need to work two jobs to make ends meet, while older generation only needed one person in the family to live comfortably.

I cannot imagine adding more taxes to this younger bracket as they are strained as we speak.

@Shinamae
Have you checked that your tax code is correct? I have my state pension as well as three small private pensions and I always complete a Form R40 and send it off to HMRC and I usually receive a small tax refund.

Generally speaking, taxes pay for public services we all use

If pensions are not taxed, the burden of your share would be moved to other taxpayers, usually younger in the age bracket.

Tax is inevitable if you earn over the personal allowance I'm afraid.

Earnings include pensions whether they be private or state.

It's not the state retirement pension that's taxed; it's any income, from any source, that takes you above £12,500 annually.

That is the vital point.

State pension is not taxed.
It is set against your personal allowance, and tax is then calculated on any other income you have.

I don't get enough pension to pay tax, but DH's pensions come to more than mine and he pays income tax. He has the benefit of the unused part of my tax allowance, though.

Why shouldn't you pay tax on a pension? It's income and contributions to it were no doubt deducted before tax. You can't have your cake and eat it!

I pay tax too but that’s one factor to consider when deciding to continue to work.
I decided not to defer my pension,unlike Chewbacca, because it means that I don’t have to draw down any money from my investments and, even now, they are doing OK.
At the moment, because I can’t work I am getting £160 furlough pay from the govn.
Thank you for helping me out Shinamae ??
Sorry couldn’t resist? I hope to be paying it back soon.

It's not the state retirement pension that's taxed; it's any income, from any source, that takes you above £12,500 annually. That's why I've deferred taking my state pension whilst I'm still working part time because I know I'd be taxed on it. And deferring taking the state pension means that it increases by 1% for every 5 weeks that you don't claim it. 10.4% if you leave it for a year.

Tax is paid on retirement pensions - nothing we can do about that whatever our job is or was. Frustrating, but unavoidable - unless you are very very rich of course and can afford an accountant to dodge tax for you.

If the carers pay goes up, as it should, there will be even more tax to pay!

Can remember feeling indignant about tax as a teenager. By the time my mum took money for my keep, the tax and NI was deducted, I ended up with less than a third of my salary.

I am permanently livid with anger against such unfair pay scales. I hope to God the pandemic will get the abominable Tories shifted for good,

Thank you Poppyred and Teetime.....?

I was told in Australia the state pension isn't taxed - not sure if that's true - DH is always griping about it.

At least you no longer have to pay N.I. contributions...bonus! ??

Yes I have always paid tax as I have always worked I just think it’s unfair to pay tax on your pension that’s all obviously I am in a minority here....

I assume you have always paid tax or have you just started this job?

Not quite sure what you are complaining about, it is the same for anyone of pensionable age.

You get an annual personal allowance of around 12k, your state pension is deducted from this giving a lower annual allowance, anything you earn above this is taxed.

There are only two sure things in this world, taxes and death.

Have you only just started work Shinamae or haven’t you noticed before

Anyone with an income (whether it’s pension or salary) of more than £12500 pa will pay tax. I’m surprised that you’re surprised.

Me as well, but what???