I am 63, deferring my pension and am still in full time employment but I intend taking my pension and the lump sum in 2 years time.
I have just learnt what a con the government's strategy for encouraging us pensioners to continue working after retirement age is, especially if we are drawing our pension.
Don't think you are going to be quids in. Apparently, once you are 65 you can only have an income of up to £24,000 per annum then the government take 50% of everything you have over that amount. YES 50%. I couldn't believe it. That includes any pensions and interest on savings according to the 'Direct.gov.uk' website. No wonder the government wants us to work longer, they'll get loads of tax off us.
I was considering working past age 65 as I am fit and healthy but I will have to think long and hard about that now. I wouldn't mind paying tax at 20% which is the rate I pay on my salary, I think that would be fair but 50% is daylight robbery.
Is anyone else outraged at this, or am I just being naive.
mischief Tue 17-May-11 18:14:20
glassortwo Tue 17-May-11 19:47:19
Dianalou Thu 19-May-11 14:40:17
PierreMaurice Sat 21-May-11 08:56:12