Db Pension

[Dagman]

Hi folks. I started taking my db pension at 55 last year. It is £400 a month. I still work and it is added to my wages subject to tax with me earning about £20,000 a year. If I were to retire at 60, and the £400 a month pension my only income, will it be subject to tax then? It would be clearly under the 20% earnings a year tax threshold, but is the pot I get the pension from taxed. Would be nice to know i still get £400 a month! TIA... Dagman

[Old_Geezer]

Income is always subject to income tax, but only above your personal allowance.
(Would need to look up what that is these days.)

[Old_Geezer]

£11,850.

[Dagman]

So i would still get the £400 a month but not taxed with it only amounting to £4800 a year?

[Maydup]

Thats correct Dagman, and if you consider semi retirement and going part time, you could earn up to £7k without paying tax.

[Fibonacci]

Personal tax allowances for 2019-2020
https://www.gov.uk/government/publications/income-tax-personal-allowance-and-basic-rate-limit-from-2019-to-2020/income-tax-personal-allowance-and-basic-rate-limit-from-2019-20

[Togo]

The pension pot is not taxed, just your return from it. If your only income was from the defined benefit source and you had no other earnings whatsoever you would , based on the info given, be under the personal tax threshold. You may however still be subject to NI contributions, and wise to look into your "history" of payments. A minimum requirement is required to enable you to qualify for the full state pension.

[Dagman]

Thankyou all for your answers, I thought the NI contributions is maybe for 30 yrs,
but you keep paying while you're still earning after this? In which case I'd have 30 years plus NI contributions by the time I retire so the contribution would stop.

[fiction-factory]

NI contributions continue until 65 (maybe beyond now) on earned income (from work) above the threshold, but NI is not deducted from pension income. I think you need more than 30 years of NI now (34/35?) for full state pension so if you retire early you may want to pay voluntary NI