Looking towards retirement?

Friday 18th August, 2017
Comments
Tax Times

Many contractors, particularly in the engineering sector, are often persuaded to work beyond their normal state pension retirement age because their specialist skills and experience are difficult to find and are thus in high demand.

If you are in that position or are soon going to be eligible for your state pension but aren't ready to stop work yet you should check your predicted entitlement by heading over to the Gov.co.uk website found here.

Don't forget that a State Retirement Pension is taxable whether you are working or not. If you are planning on continuing to work or expect to draw any occupational or private pension consider whether claiming payment of your State Pension now is a good idea.

You may find that, taken with your earnings and other pensions, drawing your State pension now will mean that it is taxed at the higher rate.

You have the option to defer your State pension and draw an enhanced rate of pension or a lump sum in the future depending upon the time for which you defer it. Once you finish contracting and have a lower level of income, your enhanced pension or lump sum payment will come in handy and may only be subject to basic rate tax depending upon the level of your other income.



Don’t forget that a State Retirement Pension is taxable whether you are working or not. If you are planning on continuing to work or expect to draw any occupational or private pension consider whether claiming payment of your State Pension now is a good idea.

You may also like...

Review and update your Will – Ensure your wishes are implemented!

Tuesday 23rd May, 2017
Comments
Tax Times
Posted by David McManus
A review of your Will is worth carrying out if there has been an instance as discussed in this blog.