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Taxable pensions

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bundesleader
Fri, 25/04/2008 - 20:06

I understand that while there are tax breaks when putting into ones pension, the actual pension is taxable when you get it back once retired.

 My question is at what point do you start paying and how much?  I keep reading that a pension pot of £100,000 gets you about £6k or £7k per year.

 Is this taxed, and if so how much?

 regards,

Sparky

Pension poser ›
satchelmouth's picture
satchelmouth
Mon, 28/04/2008 - 11:41

this is the bind, once you ve bought an annuity this is taxed at your relevant band and if you pop off in ayear or so goodbye annuity!, the tax band will include any taxable income (not ISA s) but includes state pension and savings interest

bundesleader's picture
bundesleader
Wed, 30/04/2008 - 18:25

So if I buy an annuity of £7000 per year, that should give me £583 per month.

My question is really, do I pay any tax on that?

computab's picture
computab
Sun, 18/05/2008 - 19:28

phil stilliard Gordon Brown looks really smug, and well he might, he pulled off the best tax grabs on inheritance tax, pensions dividends, etc and no-one said hardly anything, but people started to complain when the 10% tax band was abolished - this was a drop in the ocean compared with the others. No wonder pensions are so small (except his)!!

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