pension query

[bluetoon]

hi due to retire in a few months. but got the option to stay on.can i still collect my state pension if i carry on. also what about my work pension .will i be able to collect that if i carry on working .or can i carry on paying into it. any advice onthe above would be appreciated

[Graham-W]

You can certainly work and collect your state pension. You'll pay tax on it though. You can also defer your state pension which will increase by 10% for every year you defer it. http://www.pensionsad...te-pensions/deferring
As to your company pension it depends on the terms and conditions. Check with your pensions department.

[factor-fiction]

Yes, if you have reached state pension age and have paid enough NI you can get your state pension, even if you carry on working. Assuming you pay tax there will be extra tax to pay due to your state pension. There is no legal reason why you can't stay in your company pension scheme and keep paying in but it's worth checking your scheme's rules. Alternatively you could pull out of the scheme and take the benefits subject to the scheme rules allowing it. However I don't think you can draw it AND carry on paying into it- in my experience schemes don't work that way

[bluetoon]

thanks graham for the link would i still pay tax if i defer it. also work pension with local council so shall enquire about terms

[costacurta]

You can claim your company pension and carry on working. I know quite a few that have done that. A CID officer down the road from me retired at 50, took his police pension but has worked on the desk at the local police station since "retiring". His pension + what he earns as a desk officer is actually more than what he was earning in the CID. You can also carry on working and defer your pension and carry on paying into it (Unless you've already paid the maximum 40 years). As factor 30 says, you can't draw your pension and pay into it at the same time.

[factor-fiction]

You won't pay tax yet on your state pension if you defer it. If you defer it for say 3 years and then retire and draw it in 2015 you may or may not pay tax on it depending on your total annual earnings at that time

[bluetoon]

factor30 i meant if i carry on working can i either collect whats accumallated. or if i didnt collect can i carry in paying into it

[bluetoon]

thanks to everyone for there input much appreciated

[factor-fiction]

To repeat what I said earlier:
"There is no legal reason why you can't stay in your company pension scheme and keep paying in but it's worth checking your scheme's rules. Alternatively you could pull out of the scheme and take the benefits subject to the scheme rules allowing it. However I don't think you can draw it AND carry on paying into it- in my experience schemes don't work that way"

So the answer is I think it depends on your scheme's rules.

Sorry if my answer doesn't seem clear but I can't think of a better way of stating it

[woofgang]

work pension will depend on work. I think you can collect your pension and carry on working but there is something about leaving and being re-employed IIRC.
info here
http://www.direct.gov...rRetirement/DG_183723

[bluetoon]

factor30 got your point. woofgang thanks lots of info in link

[Yorky Lass]

I worked for a few months after retirement age. I drew my works pension but the rules stated I had to reduce my hours so that the combined earnings of works pension and wage did not exceed my usual monthly pay.
I still contributed to my pension scheme and when I finally retired my pension was increased.
I was also receiving my state pension and paid tax on my combined earnings.

[boxtops]

I have deferred my State Pension, I see no point on paying extra tax on it when I am still in full-time employment and paying enough tax as it is! Also, for every year you defer your SP, they add another 10.4% to the amount they will eventually pay you - so in theory if you deferred it 10 years, you'd get nearly double in SP. I get a forecast every so often from them of what I'll expect to get when I do decide to retire.

In the NHS (my employer) you can retire and collect your pension, then have a short time off/less hours, then return to your job (provided your employer agrees), so yes, it's perfectly possible to have a job and a pension (or more than one pension)- it does whack you for tax though.

Don't forget you are exempt from NI when you reach retirement age, so you need to obtain an exemption certificate and give it to your payroll office.

[factor-fiction]

I can see the advantage of deferring state pension in your case boxtops -assuming you live long enough to collect it eventually. One of the reasons the terms are quite generous is that some people may not live the extra years and therefore may never get round to drawing it.
Although you want to avoid extra tax now, you probably will eventually pay some tax on the enhanced state pension of course as your combined state and works pension will probably put make you a tax payer. But for those without a company/private pension deferment of the state pension can certainly be tax efficient