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Working at 60
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scoobydo79
- Posts: 2030
- Joined: 15 May 2011, 19:04
- Gender: Male
Working at 60
Hi Guys .Your thoughts please. I’m taking my 60 pension and still working FT . Everyone is telling me I’m being clobberd on my tax for it. Is this correct? Some say I should go part time. Thanks
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RobertT
- EX ROYAL MAIL
- Posts: 6644
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: Working at 60
As long as your overall income is below £50,270 you'll be paying income tax at 20%. Anything over is at 40%.
The good thing about pensions is you don't pay NIC's on them, so you're actually better off than if you were earning that money from working.
So proportionally, you're not necessarily paying any more income tax by continuing to work full time. But a lower percentage of your income would be reduced by NIC's if you went part time.
The starting rate for NIC's is the same as for income tax - £12,570 per year.
The good thing about pensions is you don't pay NIC's on them, so you're actually better off than if you were earning that money from working.
So proportionally, you're not necessarily paying any more income tax by continuing to work full time. But a lower percentage of your income would be reduced by NIC's if you went part time.
The starting rate for NIC's is the same as for income tax - £12,570 per year.
Links to all RM pension related websites are here
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scoobydo79
- Posts: 2030
- Joined: 15 May 2011, 19:04
- Gender: Male
Re: Working at 60
Thank You Robert. Excellent advice (as always) from You
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Wullie10
- EX ROYAL MAIL
- Posts: 699
- Joined: 30 Jul 2017, 12:07
- Gender: Male
- Location: Retired
Re: Working at 60
You'll only get clobbered if you hammer in the overtime , work everyday day off etc. I know people who are state pension age , getting full RM pension and still work every hour they can. They certainly will be paying higher tax later in the year. Its beyond me why anyone would do this but each to their own.