An estimated 2.5million pensioners, or one in five of those living in Great Britain, receive a state pension above the income tax threshold. The £12,570 personal allowance marks the point at which income tax kicks in, and it has been frozen since 2021, prompting the Conservatives to offer a 'triple lock plus' pledge in their manifesto.
The use of cash has dropped steeply over recent years. Many people now prefer the ease of banking online and using contactless payments.
'The lack of this income has thrown my retirement plans in the air and I'm extremely worried something has gone terribly wrong,' she tells us.
I have been a recipient of working tax credit while concurrently making contributions to my personal private pension with Scottish Widows for an extended period. These contributions were facilitated through direct debit payments from my bank account, allowing me to deduct 100 per cent of the pension contributions from my annual salary. Following my transition to Universal Credit, I sought clarification regarding the treatment of my private pension contributions.
Steve receives more questions about the state pension than anything else, and we've compiled his columns on the most frequently raised topics here.
Former Pensions Minister Steve is This is Money's Agony Uncle. Here's where you can check out all his previous columns to see if any involve issues affecting you.
The house has been valued at £300,000 plus. However, my mum's sister is trying to sell it to another family member for almost £50,000 less. This seems illegal, as someone holding power of attorney is obligated to act in the best interest of the person they represent. My mum wants to ensure they get the highest possible price for their mother's property to properly cover her care expenses. Lawyer Chris Gilbert of Nalders replies.
Campaigners say multiple unofficial websites that appear to originate outside of the UK have sprung up in recent days to try to get hold of women's personal details.
We reveal the ten most common conditions that have led to drivers having their licences rescinded as the DVLA deems them no longer fit to be behind the wheel.
Families are finding they're stuck in a 'parent trap' when it comes to where they live with many needing to be close to grandparents in order to get help with childcare. Half of parents with children under the age of 13, live less than five miles from their nearest grandparent, according to a new study by Zoopla, with seven in 10 being a 30 minute journey away. Full-time places in nursery now cost as much as £140 per day - the equivalent of £33,700 a year for one child or £2,800 a month.
No rent, food magically appearing in the fridge and washing done on demand - it's little wonder some adult children choose to stay in the family home.
My house is worth £325k, I will inherit £250k from my father and also have some money in pensions. What is the best way to pass this on to my daughter?
Chris Taylor, 72, pictured left, spent £740 nearly eight years ago on top-ups that turned out to be worthless, but did not receive a full refund until we intervened. Martin Ryves, 65, pictured right, paid £4,900 to boost his state pension in May last year, but his money vanished until we and his MP asked the Government to investigate. We have previously reported that untold sums of top-ups cash could be sitting in government coffers, instead of being processed to boost state pensions or repaid to people.
Retaining the freeze on the personal allowance means a pensioner who receives full state pension and some private pension income, will have to pay income tax.
He employed Abacus Wills & Trusts Limited to prepare his will and set up a family trust, and he asked the company's owner, Ms Tehsin Aslam, to be the executor.
Labour has u-turned on its plans to reinstate the pensions lifetime allowance in a boost to wealthy savers. The Government abolished the old £1.073m lifetime allowance last year, but Labour said at the time the party would bring it back if elected.
This is Money's Simon Lambert talks to Hargreaves Lansdown's Susannah Streeter about what could lie in store for investors and savers.
Dividing assets in a divorce is challenging enough but it can become even more fraught when decisions affect what you might be able to leave your loved ones in future.
The party is pushing proposals that would assist older and disabled people with everyday tasks like washing, dressing and receiving medication, and boost the pay of care workers to address staff shortages. The plan for England is similar to the system in Scotland, where free personal and nursing care is available to all adults assessed by their local authorities as eligible. How would it work, what might the other parties offer, and what is the response from experts?
A third said they needed the income, in some cases due to redundancy or making up for reduced earnings, and 8 per cent of 'early dippers' said they regretted it,
I want to stop working full-time in a decade when I reach 54 and need to make the next ten years really count financially. Can I get where I need to be?
Housing benefit is now merged into Universal Credit for working age people, but it is still available to people over state pension age and those living in certain kinds of accommodation. It is intended to support renters who are on a low income, and does not cover homeowners - though depending on their circumstances, they may qualify for a loan to help with mortgage interest payments. We run down the housing benefit rules and how to apply, and some valuable sources of help if you are struggling to afford a roof over your head.
Although the original intention was for the country to be covered in a blanket of smart meters by 2019, that dream died long ago.
Our consumer champion SALLY HAMILTON picked up the phone to find the quickest way to speak to a real person on some of the UK's busiest helplines.
The personal allowance, the amount you can earn without paying income tax, will be hiked at a special higher rate for pensioners, according to the Tories. That means it will never fall below the full state pension, the party has pledged. The £12,570 personal allowance has been frozen since 2021, which means many more pensioners are now forking out income tax if they receive the £11,500 a year full state pension plus some private pension income.
He has dementia and his recollection of events is unclear - but the spending happened two hours away and was nothing like his usual activity.
Today, we are teaming up with ex-pensions minister STEVE WEBB to help readers boost their retirement wealth by locating old pensions.
The Tories and Labour will be going all out to reassure people their financial prospects are safe on their watch during the general election campaign. But in a time of straitened public finances, both parties will also be looking to scrape up cash to fund their main priorities.
The Tory Government abolished the old £1.073million lifetime allowance last year, but Labour said at the time the party would bring it back if elected. Now the election is under way, Labour will be pressed to clarify its plans and particularly what new limit it has in mind.
I've been trying to move my work pension, which currently sits at about £19,750, from Lifesight to Nest since August 2023, following a change in employer. They are both pointing fingers at each other and saying it's the other's fault, leaving me completely stuck in limbo. I've raised complaints and they have gone nowhere. Both schemes claim the other one isn't sending the correct documentation. Can you help me?
Many people don't know the current rage or the state pension age - and there are common misconceptions about how the system works.
This week TV presenter Anne Robinson said she had 'given away' her £50million fortune to avoid inheritance tax.
I have no dependents and have paid off my mortgage. I am now 65 and hope to retire next year when I will receive a full state pension as well as an NHS pension of around £4,000 per year. I currently have £180,000 in savings - mainly cash Isas and premium bonds. How can I get a monthly payout from this without eating too much into my savings pot, and what is the best way to make sure that my money is safe?
Doorstep scams now make up a fifth of suspected cons reported to consumer charity Citizens Advice - the highest proportion since May 2019.
With its quiet way of life, tight-knit community and affordable living costs, it is easy to see why Folkestone in Kent is a favourite among retirees.
Research compiled by Scottish Widows showed the average amount withdrawn before retirement was £47,000, with many using the cash to keep on top of bills and higher living costs. Around a fifth, or 21 per cent, of people extracted cash from their pensions nine to 10 years before their selected retirement age.
Escaping the rat race has always held appeal but the allure appears to be growing and becoming more intense.
Last June, 3.4m members received a £100 payment from the building society. Now they will be wondering whether the offer will be replicated this year.
People in their mid to late 40s and early 50s need to be aware of the change if they want to retire early, or use some of their pension savings to clear debt or meet other expenses. It's especially important to find out the age rules on your work and other personal pensions, because some people will continue to be able to access their funds at 55 depending on what they say. But you could accidentally forfeit this right if you move a pension to a scheme without this benefit. Here's what you need to know...
Work out how a lump sum or regular monthly savings would grow
While many people dislike the idea of an annuity, the alternative means keeping your pension invested in retirement and managing it yourself - a process that can be confusing and full of pitfalls. So here's a checklist, from investing, to income, taxes, the state pension, inheritance, illness, financial advice and much else.
The 40% inheritance tax rate is drastically high - but only applies if you have amassed enough assets for your loved ones to become liable on some chunk of them.
Appointing someone you trust, usually a family member or friend, as an attorney to take control of your affairs if you fall ill is a relatively straightforward business. Here's how it works.
Investors can rack up big losses early on and never make them up if they aren't careful. People who persist in taking an income in those circumstances can pile up future problems. But you can put defences in place against market shocks before you retire, and there are ways to overcome investment setbacks in the early years too. Find out how...
PIP is tax free and is not affected by your income or savings, or most other benefits. We explain the rules, how to apply, and where you can turn for help below.
Pension credit boosts your weekly income and opens the door to a lot of additional help with housing costs, heating, council tax, TV licences and other bills.
The bond market crash in recent months has drawn attention to a little-known or understood investment strategy that many workers are 'defaulted' into in the run-up to retirement. Some older workers have discovered to their horror that they are sitting on huge losses right on the brink of retirement , which they might be forced to delay as a result. Here's what you need to know about pension lifestyling...
If you are new to investing, and feel lukewarm at the prospect, one easy and potentially lower cost option open to people with a work pension is to top up investments already held in their retirement fund.
Pension credit tops up weekly income to a minimum of £201.05 for single people and £306.85 for couples, and it can be more if you are a carer or disabled.
This depends on when the surviving partner reaches or has passed state pension age and their spouse's date of birth and National Insurance record. What you might get if anything is far more limited if you reached or are still due to reach state pension age after April 2016.
Everyone is allowed to save for retirement out of untaxed income up to a pretty generous level every year, including the highest earners. So how does it work?
Prime Minister Rishi Sunak recently announced his intention for school pupils to learn maths to age 18. What would a real-world curriculum to help youngsters understand personal finance look like?
Modern work pensions are essentially cheap investment products provided and subsidised by employers. At a time when money is tight, it's worth exploring what they can do for you - including some obscure and surprising add-on benefits. Auto enrolment into work pensions takes the hassle out of saving for retirement, but you could be missing a trick or two by not looking any further than that.
When it's time to stop work and enjoy retirement, you need to make the most of the money you have saved. That means turning pension funds into an income. We explain what you need to know.
Savers collect a string of pension pots during their working lives but many never bother merging any of them. It is not always advisable because you can lose valuable benefits - here's what to weigh up.
Elderly women could receive nearly £1.5billion in state pension arrears after being shortchanged for decades, the Government admitted this week. A lot of women are understandably asking if they missed out on thousands of pounds in state pension, and we explain how to find out and what to do if you are owed money by the DWP. The scandal was uncovered by former Pensions Minister Steve Webb and This is Money, after we launched an investigation into a reader question to his weekly column in early 2020.
We explain changes to the state pension age, so you can find out when you will be allowed to retire
Pensions are often neglected in divorce settlements despite their value to both partners. Find out how they can be divided fairly and some of the worst traps.
No one wants to save up all their working life for a decent retirement only to get stuck with an avoidable tax bill. Unfortunately, there are many tax traps for the unwary when it comes to pensions. It's especially important to find out about them if you decide not to get financial advice when you start tapping your fund. We asked pension experts for their tips on what trips people up the most often, and how to keeping a retirement fund as safe as possible from the taxman.
It will be little consolation for the loss of your health, but there are ways to use your pension pot to relieve money troubles should you find yourself in this sad situation.
If you are worried about your retirement fund and ability to keep saving or make ends meet, we will help you shore up your finances in hard times.
There are many legal ways to dodge the dreaded 40 per cent 'death tax' if you want to pass on the maximum sum possible and are prepared to plan ahead. Here's our round-up of 10 ways to reduce or avoid a large inheritance tax bill, some of which can be undertaken easily by any ordinary person without the need for elaborate arrangements or to pay for professional help.
Do you ever receive your tax code in the post, look at it and not really understand what it means? Tax expert Heather Rogers explains how to check it is correct, so you don't overpay tax.
Have you received a tax code for 2022/23 that is incorrect? Tax expert Heather Rogers explains the most common errors that crop up, and how to get HMRC to put them right.
Hoard your pension and spend other cash and investments first, to keep your money away from the taxman. That's the advice experts dish out to retirees worried about inheritance tax. But anyone who wants to minimise their annual income tax, or use up their capital gains tax allowance efficiently, might also benefit from not spending a pension first.
Ideally I'd like to carry on paying my current higher contributions and getting them fully matched by my employer. Do I have a right to this?
When someone dies it is essential to deal with their estate, which is made up of their home, savings and investments and belongings. We explain probate.
Job switching, auto enrolment with every move, and people's tendency to lose pension information and not update schemes with contact details are all behind the rise in orphaned pots. The cost of living crisis has highlighted the importance of tracking down lost pensions to boost your eventual retirement income, according to an industry campaign to help people find them.
James Urquhart-Burton, pictured, partner at Ridley & Hall Solicitors and an expert in care funding, explains how to make an application for yourself, or a loved one. It's crucial to check your eligibility to avoid unnecessary bills, and never too late to ask for an assessment, but you will have to be proactive, he says.
Getting your or a loved one's care fees fully funded can be a struggle, and many families feel their cases are wrongly rejected. James Urquhart-Burton, partner at Ridley & Hall Solicitors and an expert in care funding, lays out the potential grounds for objecting to an NHS refusal and how to make a successful appeal.
We decode some of the jargon, from the more commonplace to the exotic, that you might come across when exploring your pension options. It comes as research shows that while savers heartily welcomed pension freedoms launched in April 2015, they feel baffled and overwhelmed when dealing with the new choices opened up to over-55s of spending, saving and investing their retirement pot.
To avoid in the future potentially my brother's wife being entitled to some of the inheritance we have discussed the option of my grandmother leaving 100 per cent to myself. My brother and I have a very good and close relationship. This would keep the money safely under my control. I would then when the time is right use the money to provide things for my brother such as a car, holiday and so on. My question is are there any tax implications on me spending potentially large amounts on 'gifts' for my brother?
My dad is in a care home as he has vascular dementia. I may need to sell his house in order to pay for his care when his savings run out. Lawyer Jaz Virk, pictured, replies.
I recently discovered my ex did not complete the necessary documents and therefore wasn't paid her share of my pension. Must I pay it now?
A few years ago I employed a financial adviser to consolidate all my company pensions, and my personal pension into one pension. Since signing up, I now pay a percentage of the value in fees to the financial adviser each year and I don't feel I'm getting value for money. Basically I have an annual review where they advise not to do anything with the pension. Do I have to have a financial adviser or am I allowed to manage my pension myself? Veteran money expert Henry Tapper, pictured, replies.
We couldn't put it in joint names because I had to be a pensioner to be able to live there. How can I make sure they don't lose their investment if for some reason I do have to go into care.
My husband took early retirement at 55. That was six years ago. I am 63 and still working - when I come to retire would he be able to claim some of my pension? Irpreet Kohli of Freeths replies.
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