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Tax on Teacher's pension

Discussion in 'Retirement' started by basilicata, Mar 14, 2011.

  1. If I retire early (at 56 with an actuarial reduction) what % of my pension
    would I pay as tax? Jim
     
  2. You'll probably pay 20% on your total income above the £7500 tax free limit from this April.
    You don't pay NI on a pension.
    If your only income is your pension, you'll pay 20% tax on what you get above £7,500.If in doubt, get professional advice from your union or similar.But that is subject to what G Osborne does in the budget.
     
  3. jacob

    jacob Lead commenter

    there are no concessions. Your tax allowance on your earnings (which is what pension is) will be whatever personal allowance is for you now. Your personal tax code does not oncrease until you hit state pension age.
     
  4. How do you pay tax on your pension? (Assuming I ever get it). Is it by PAYE? If so, who does this?
     
  5. oldsomeman

    oldsomeman Lead commenter

    now there i could help you as i have takena few apart in my time lol
    if you happenen to have an old velocette hanging around you want rid off.im interested![​IMG]
     
  6. Alas, the Venom I had was well past its best when it came into my hands. When it was going, it was a pleasure to ride; but when it got to the 'one week fixing for every one day riding' the experience lost its sparkle. In addition, I found it all too easy for my leg to come into contact with its rather hot oil tank. The 'big bang' came on Monday 13th April 1970, when the oil started spewing out of everywhere. I remember the date as I was not the only person to have trouble with exploding tanks that day!
     
  7. do you get it paid in monthly?or annually?
     
  8. A teacher's pension is paid monthly on the day before one's birth date, eg, if you were born on the 3rd May you will get your pension paid into your bank account every month on the 2nd
    I took AAB in May and I'm loving retirement - not very rich but very happy!!!
    Billji.
     

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