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[STEMO]

Teacher pensions are basically paid from the imaginary money pot and are guaranteed regardless of whether there's any actual money to pay out.

Anyone who spends nearly 40 years being punched, kicked and spat at, deserves every penny they get.
But that's teachers for you, some of the kids are even worse 

Both my parents were teachers in the private sector, yet their pensions are/were dictated by the greater good.

Oh dear, never mind 

[johnnydog]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?

[LC0112G]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

I will be taxed on mine as Im still working, but yes a nice bonus to build up reserves with.
Swmbo is currently 12 years short of NIC,s for her state pension, but we are in the process of buying them , so she will also get full state pension untaxed from June 2028.

You don't have to take your State Pension at 67. You can defer it. If you continue to work past your normal State Pension Age then this can be very good value.

https://www.gov.uk/deferring-state-pension/what-you-get

The amount that is then paid out when you do take it will have increased by 5.8% per year of deferral. I haven't done the sums recently, but if you are in good health (you expect to live for > 10 years) the conventional wisdom was that it's best to defer by between 3 and 5 years, which would result in about a 33% increase in your state pension - about £15900 p/a.

Of course, you could die before you break even - but them's the breaks.

[LC0112G]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?

Yes - sort of. What happens is your personal allowance is reduced by the amount of your state pension. Your employer will receive a new tax code for you to reflect this, and you'll end up paying tax on £12K (or whatever your SP is) more of your salary.

[STEMO]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?

Yeah, I didn't really make my self clear there. The actual deduction would probably be from any earned wages, but it still means you're paying tax on everything over £12,750 (or whatever) and your pension counts towards that.

[STEMO]

There's an echo in here 

[Raeturbo]

There’s an echo in here

[Migv6 le Frog Fan]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

I will be taxed on mine as Im still working, but yes a nice bonus to build up reserves with.
Swmbo is currently 12 years short of NIC,s for her state pension, but we are in the process of buying them , so she will also get full state pension untaxed from June 2028.

You don't have to take your State Pension at 67. You can defer it. If you continue to work past your normal State Pension Age then this can be very good value.

https://www.gov.uk/deferring-state-pension/what-you-get

The amount that is then paid out when you do take it will have increased by 5.8% per year of deferral. I haven't done the sums recently, but if you are in good health (you expect to live for > 10 years) the conventional wisdom was that it's best to defer by between 3 and 5 years, which would result in about a 33% increase in your state pension - about £15900 p/a.

Of course, you could die before you break even - but them's the breaks.

Im not sure it would be wise to defer it. Even though I will effectively pay 20% tax on it.
Lets say I save £9500 of it p.a.( after tax figure)  and get say 4% interest p.a. That has to be better than deferring it and getting the 5.8 % interest but not putting £9500 in the bank for the four years Im planning on working after I start claiming it ? *
I should add, I will still be below the 40% threshold when everything is added up.

Also, I will stop having to pay NIC once I reach state retirement age, in either scenario which will be nice.

Edit * Actually, having thought about it, that will depend on how long I live. At some point there will be a crossover, where I would have been better off deferring.
Maybe stick with my plan and get swmbo to defer hers, so covering both bases ?

[Migv6 le Frog Fan]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?

The state pension is added to total earnings and you get taxed on the whole amount.

[STEMO]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

I will be taxed on mine as Im still working, but yes a nice bonus to build up reserves with.
Swmbo is currently 12 years short of NIC,s for her state pension, but we are in the process of buying them , so she will also get full state pension untaxed from June 2028.

You don't have to take your State Pension at 67. You can defer it. If you continue to work past your normal State Pension Age then this can be very good value.

https://www.gov.uk/deferring-state-pension/what-you-get

The amount that is then paid out when you do take it will have increased by 5.8% per year of deferral. I haven't done the sums recently, but if you are in good health (you expect to live for > 10 years) the conventional wisdom was that it's best to defer by between 3 and 5 years, which would result in about a 33% increase in your state pension - about £15900 p/a.

Of course, you could die before you break even - but them's the breaks.

Im not sure it would be wise to defer it. Even though I will effectively pay 20% tax on it.
Lets say I save £9500 of it p.a.( after tax figure)  and get say 4% interest p.a. That has to be better than deferring it and getting the 5.8 % interest but not putting £9500 in the bank for the four years Im planning on working after I start claiming it ? *
I should add, I will still be below the 40% threshold when everything is added up.

Also, I will stop having to pay NIC once I reach state retirement age, in either scenario which will be nice.

Edit * Actually, having thought about it, that will depend on how long I live. At some point there will be a crossover, where I would have been better off deferring.
Maybe stick with my plan and get swmbo to defer hers, so covering both bases ?

A bird in the hand.......

[LC0112G]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

I will be taxed on mine as Im still working, but yes a nice bonus to build up reserves with.
Swmbo is currently 12 years short of NIC,s for her state pension, but we are in the process of buying them , so she will also get full state pension untaxed from June 2028.

You don't have to take your State Pension at 67. You can defer it. If you continue to work past your normal State Pension Age then this can be very good value.

https://www.gov.uk/deferring-state-pension/what-you-get

The amount that is then paid out when you do take it will have increased by 5.8% per year of deferral. I haven't done the sums recently, but if you are in good health (you expect to live for > 10 years) the conventional wisdom was that it's best to defer by between 3 and 5 years, which would result in about a 33% increase in your state pension - about £15900 p/a.

Of course, you could die before you break even - but them's the breaks.

Im not sure it would be wise to defer it. Even though I will effectively pay 20% tax on it.
Lets say I save £9500 of it p.a.( after tax figure)  and get say 4% interest p.a. That has to be better than deferring it and getting the 5.8 % interest but not putting £9500 in the bank for the four years Im planning on working after I start claiming it ? *
I should add, I will still be below the 40% threshold when everything is added up.

Also, I will stop having to pay NIC once I reach state retirement age, in either scenario which will be nice.

Edit * Actually, having thought about it, that will depend on how long I live. At some point there will be a crossover, where I would have been better off deferring.
Maybe stick with my plan and get swmbo to defer hers, so covering both bases ?

If you take your SP at 67 but continue to work, then due to tax (at 20%) you'll not receive an 'extra' £9500 - it'll effectively only be an extra £7600. Stick that in the bank at 4% for a year (and resist the temptation to pi55 it up the wall) and at 68 you'll have a cash lump sum of £7904, and an annual state pension of £9500.

If you defer for 1 year, then at 68 your annual state pension would be £10051 - so £551 more per year, but no lump sum.

The break even point is a further 14 years (£7904/£551) - so you would need to live to 82 for the gamble to pay off. Die the day after you claim your SP (at 68 and one day) then you're £7900 down. Live to 100 and you'd be quids in.

Not saying it's right for everyone, but it's an option to consider if you intend to continue working past state pension age.

[Doctor Gollum]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?

Yes - sort of. What happens is your personal allowance is reduced by the amount of your state pension. Your employer will receive a new tax code for you to reflect this, and you'll end up paying tax on £12K (or whatever your SP is) more of your salary.

Whenever I had two jobs, the second one was always taxed/NI paid on the full amount keeping the allowances on the primary job. HMRC are actually pretty good in this regard as they will allocate the allowances as you request.

Not sure if this would apply to a state pension though as you would be presumed to be at least semi retired so being retired would be your primary income.

[LC0112G]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?

Yes - sort of. What happens is your personal allowance is reduced by the amount of your state pension. Your employer will receive a new tax code for you to reflect this, and you'll end up paying tax on £12K (or whatever your SP is) more of your salary.

Whenever I had two jobs, the second one was always taxed/NI paid on the full amount keeping the allowances on the primary job. HMRC are actually pretty good in this regard as they will allocate the allowances as you request.

Not sure if this would apply to a state pension though as you would be presumed to be at least semi retired so being retired would be your primary income.

Yes, that's how it works with the SP. The SP is effectively treated as your 'primary job' and gets first crack at your personal allowance.  If you are still working then your first 'real job' only gets whatever the difference between your state pension and your personal allowance is. Any second, third or fourth 'real job' would basically get zero personal allowance.

The same thing happens with personal/occupational pensions. The state pension gets first dibbs on your personal allowance, then typically one other pension gets the remainder of your personal allowance, and any second/third/fourth personal/occupational pensions get zero allowance.

[Migv6 le Frog Fan]

Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.

I will be taxed on mine as Im still working, but yes a nice bonus to build up reserves with.
Swmbo is currently 12 years short of NIC,s for her state pension, but we are in the process of buying them , so she will also get full state pension untaxed from June 2028.

You don't have to take your State Pension at 67. You can defer it. If you continue to work past your normal State Pension Age then this can be very good value.

https://www.gov.uk/deferring-state-pension/what-you-get

The amount that is then paid out when you do take it will have increased by 5.8% per year of deferral. I haven't done the sums recently, but if you are in good health (you expect to live for > 10 years) the conventional wisdom was that it's best to defer by between 3 and 5 years, which would result in about a 33% increase in your state pension - about £15900 p/a.

Of course, you could die before you break even - but them's the breaks.

Im not sure it would be wise to defer it. Even though I will effectively pay 20% tax on it.
Lets say I save £9500 of it p.a.( after tax figure)  and get say 4% interest p.a. That has to be better than deferring it and getting the 5.8 % interest but not putting £9500 in the bank for the four years Im planning on working after I start claiming it ? *
I should add, I will still be below the 40% threshold when everything is added up.

Also, I will stop having to pay NIC once I reach state retirement age, in either scenario which will be nice.

Edit * Actually, having thought about it, that will depend on how long I live. At some point there will be a crossover, where I would have been better off deferring.
Maybe stick with my plan and get swmbo to defer hers, so covering both bases ?

If you take your SP at 67 but continue to work, then due to tax (at 20%) you'll not receive an 'extra' £9500 - it'll effectively only be an extra £7600. Stick that in the bank at 4% for a year (and resist the temptation to pi55 it up the wall) and at 68 you'll have a cash lump sum of £7904, and an annual state pension of £9500.

If you defer for 1 year, then at 68 your annual state pension would be £10051 - so £551 more per year, but no lump sum.

The break even point is a further 14 years (£7904/£551) - so you would need to live to 82 for the gamble to pay off. Die the day after you claim your SP (at 68 and one day) then you're £7900 down. Live to 100 and you'd be quids in.

Not saying it's right for everyone, but it's an option to consider if you intend to continue working past state pension age.

My state pension age is 66, which is 28th October this year.
That aside, Im a bit lost now. State pension is currently £12000 pa (within a few quid). If I pay 20% tax on it, I make that approx. £9500.
I dont understand where the £7600 figure comes from.

[Doctor Gollum]

Is it from effectively getting taxed twice