Working on after 60 and not taking any pension

[N1-22postman]

I am 59 with 33 years service and will be working on after 60 and don`t want to take any pension until I retire.I will pay a lot less income tax at 20% this way because when I do retire my annual pension will be just above the personal tax allowance of £7000 for tax year 2011 to 2012.Can anyone tell me if you pay national insurance of 11% on your pension if you take it at 60 and carry on working to 65? If you do I would pay a lot less national insurance by not taking my pension until I retire because like income tax there is an annual allowance of almost £6000 per annum.Does anyone know by how much Royal mail enhances NRA60 benefits for each year they are not taken?
Many thanks N1-22Postman

[RobertT]

my annual pension will be just above the personal tax allowance of £7000 for tax year 2011 to 2012.

The new personal allowance will be £7,475 from April 2011.

Can anyone tell me if you pay national insurance of 11% on your pension if you take it at 60 and carry on working to 65?

You shouldn't pay NI on any pension income.

Does anyone know by how much Royal mail enhances NRA60 benefits for each year they are not taken?

The pre 2008 element of your NRA60 benefits are still based on your final salary when you leave, so assuming we have a pay rise next year, then your pension will go up aswell. Your career average element from 2008 to 2010 will go up with inflation every year.

[deltaforce]

Youll still pay tax at 65 when you group all accrued pensions and ill doubt if you will recoup 5 years lost pension if you dont take it at 60

[RobertT]

Youll still pay tax at 65 when you group all accrued pensions and ill doubt if you will recoup 5 years lost pension if you dont take it at 60

All income over your age related tax allowance is taxed. For year 2011-12 they will be:
Under 65 - £7,475 (currently £6,475)
Over 65 - £9,490
Over 75 - £9,640

[N1-22postman]

Thank you everyone for your replies.Royal Mail and CWU have now told me that there would be no enhancement of my NRA60 annual pension of almost £9,000 if I don`t take it at 60 other than a small rise due to a combination of a pay rise and inflation.I hope to retire at 61 and the pension of almost £9,000 would be my only income (supplemented by the lump sum) until 65 when the state pension kicks in.My idea of saving income tax is a non starter as I would never recoup very much of the annnual pension of £9,000 that I would lose in the year 60 - 61. At least it`s nice to know that I won`t be paying national insurance at 11% on my £9,000.So there is no case for not taking my NRA60 benefits at 60.
Many thanks - N1-22Postman

[baldrick]

until 65 when the state pension kicks in.

You might not get your State Retirement Pension until you are 66, as the ConDems are likely to raise the retirement age to 66 in 2016.
http://www.guardian.co.uk/money/2010/ju ... ge-rise-66" onclick="window.open(this.href);return false;

[POSTMAN]

Mine is 66 years, 2 months and 22 days old/ 6 September 2034


http://pensions.direct.gov.uk/en/state- ... r/home.asp" onclick="window.open(this.href);return false;

[fishtank]

Mine is 66 years, 2 months and 22 days old/ 6 September 2034


http://pensions.direct.gov.uk/en/state- ... r/home.asp" onclick="window.open(this.href);return false;

Lucky sod you get yours first.

You will reach State Pension age on 6 July 2035 You will be 66 years, 7 months and 18 days old

That's 24 years, 8 months and 18 days away.

[POSTMAN]

Mine is 66 years, 2 months and 22 days old/ 6 September 2034


http://pensions.direct.gov.uk/en/state- ... r/home.asp" onclick="window.open(this.href);return false;

Lucky sod you get yours first.

You will reach State Pension age on 6 July 2035 You will be 66 years, 7 months and 18 days old

That's 24 years, 8 months and 18 days away.

Think of al the posts i could do why you're still working.

[clashcityrocker]

Or we could all grow a pair.....

http://www.itv.com/news/french-strike-riots43578/" onclick="window.open(this.href);return false;

[fishtank]

Or we could all grow a pair.....

http://www.itv.com/news/french-strike-riots43578/" onclick="window.open(this.href);return false;

That's a real pair...not a mincy little watnots pair.

[Dad]

I don't get it. If you opt not to take your pension at 60, you are effectively declining an income of £7000 per year (in your case) less tax. When do you get this back or is it lost forever? I don't see the advantage of deferring taking your pension until you eventually retire!

[baldrick]

Mine is 66 years, 2 months and 22 days old/ 6 September 2034


http://pensions.direct.gov.uk/en/state- ... r/home.asp" onclick="window.open(this.href);return false;

Don't count on that POSTMAN - the State Retirement Pension age will probably be 70 by then.

[fishtank]

Don't count on that POSTMAN - the State Retirement Pension age will probably be 70 by then.

[TrueBlueTerrier]

Mine is 66 years, 2 months and 22 days old/ 6 September 2034


http://pensions.direct.gov.uk/en/state- ... r/home.asp" onclick="window.open(this.href);return false;

Lucky sod you get yours first.

You will reach State Pension age on 6 July 2035 You will be 66 years, 7 months and 18 days old

That's 24 years, 8 months and 18 days away.

Ha you young whipper-snappers you - less than 20 years for me