carl0s Posted September 21, 2009 Share Posted September 21, 2009 Anybody know a bit about this? I understand that if you have a private pension, the govt will credit you your income tax on the money that you're putting into the pension, so if you put £80/month, they'll put another £20/month in if you're a basic rate tax payer, or perhaps it's fixed at 20% regardless of your earnings. Anyway, does this mean I can just shove £5k of my savings straight into a pension scheme now and the govt will add £1k to it? Or are there things in place to prevent this? cheers Quote Link to comment Share on other sites More sharing options...
carl0s Posted September 21, 2009 Author Share Posted September 21, 2009 S'okay, I found the answers I needed here: http://www.direct.gov.uk/en/Pensionsandretirementplanning/Companyandpersonalpensions/PersonalPensions/DG_10014696 In short, yes, I can dump £10k into a pension now and the government will turn it into £12k. If I was a big earner, I could get a further £2k off the government as well. Quote Link to comment Share on other sites More sharing options...
carl0s Posted September 21, 2009 Author Share Posted September 21, 2009 It does lead me to another question though.. Do pensioners pay tax on their pensions as they draw it? I know that sounds barmy, but it's possible.. Quote Link to comment Share on other sites More sharing options...
TopgunTT Posted September 22, 2009 Share Posted September 22, 2009 Talking to yourself there Quote Link to comment Share on other sites More sharing options...
gaz1 Posted September 22, 2009 Share Posted September 22, 2009 It does lead me to another question though.. Do pensioners pay tax on their pensions as they draw it? I know that sounds barmy, but it's possible.. yes you pay tax when drawing your private pension, pretty disgusting if you ask me:( Quote Link to comment Share on other sites More sharing options...
markssupra Posted September 22, 2009 Share Posted September 22, 2009 You get shafted one way or another Are you drawing yours already Gaz? Quote Link to comment Share on other sites More sharing options...
carl0s Posted September 22, 2009 Author Share Posted September 22, 2009 yes you pay tax when drawing your private pension, pretty disgusting if you ask me:( Oh. So they are just deferring the tax then in effect. Hmmm. Quote Link to comment Share on other sites More sharing options...
gaz1 Posted September 22, 2009 Share Posted September 22, 2009 You get shafted one way or another Are you drawing yours already Gaz? Quote Link to comment Share on other sites More sharing options...
gaz1 Posted September 22, 2009 Share Posted September 22, 2009 Oh. So they are just deferring the tax then in effect. Hmmm. i think thats a good way of putting it, i believe if your pension is over the normal threshold they hit you with the higher tax bracket too:rolleyes: Quote Link to comment Share on other sites More sharing options...
carl0s Posted September 22, 2009 Author Share Posted September 22, 2009 i think thats a good way of putting it, i believe if your pension is over the normal threshold they hit you with the higher tax bracket too:rolleyes: Hmmm. Thanks very much. More to consider then, oh well! Quote Link to comment Share on other sites More sharing options...
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