State Pension

[crookesey]

With Tax-Free Allowances being frozen until 2028 it is possible that the top end  State Pensions will be subject to taxation if they keep on rising by 8.50% p/a, or am I missing something in respect of my workings? 

[crookesey]

1 minute ago, crookesey said:

With Tax-Free Allowances being frozen until 2028 it is possible that the top end  State Pensions will be subject to taxation if they keep on rising by 8.50% p/a, or am I missing something in respect of my workings? 

Tried to post this as a new topic but something went wrong, will admin kindly oblige?

[KP Nuts 2]

4 hours ago, crookesey said:

With Tax-Free Allowances being frozen until 2028 it is possible that the top end  State Pensions will be subject to taxation if they keep on rising by 8.50% p/a, or am I missing something in respect of my workings? 

Good point. I'll be in that category after the next increase. Not only that, if you have any interest on savings you also get a £5,000 additional allowance which I think reduces by the amount that your income exceeds your personal allowance so it's a double whammy.

[aardvark6535]

They gave us a small rebate via Nation Insurance, but by keeping the tax-free personal allowance the same, it allowed them to suck in more People to pay tax who have never paid it before.

[El Cid]

8 hours ago, crookesey said:

With Tax-Free Allowances being frozen until 2028 it is possible that the top end  State Pensions will be subject to taxation if they keep on rising by 8.50% p/a, or am I missing something in respect of my workings? 

They could freeze both the personal allowance and the state pension?

[Anna B]

According to recent news report, the basic state pension is no longer enough to cover even the basics of bills and food. This is going to affect women more than men as they didn't always have the opportunity (or the money) to pay into a private / works  pension. 

[crookesey]

11 hours ago, El Cid said:

They could freeze both the personal allowance and the state pension?

They re committed to annual increases of the State Pension, it doesn’t take  a lot of reckoning to see that if the Tax-Free Allowance doesn’t increase in-line with the State Pension it will end up being taxed.

[Al Bundy]

6 hours ago, Anna B said:

According to recent news report, the basic state pension is no longer enough to cover even the basics of bills and food. This is going to affect women more than men as they didn't always have the opportunity (or the money) to pay into a private / works  pension. 

But will those who are struggling or who don't get the recommended minimum weekly amount to live on get other benefits?

[Anna B]

3 hours ago, Al Bundy said:

But will those who are struggling or who don't get the recommended minimum weekly amount to live on get other benefits?

Not necessarily. Plenty of people are on the 'cusp,' not enough to live on but too much for other benefits. Besides which other benefits might also be cut as the goalposts are constantly moviing.

[LLAN]

There's some information here about other benefits.

 

https://www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/benefits-if-you-are-over-state-pension-age/