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Old 22nd Sep 2011, 08:13
  #46 (permalink)  
Al R
 
Join Date: Jul 2007
Location: @exRAF_Al
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endplay,

On the surface of it, yes - you get the State pension in addition to AFPS. But your State pension is deemed to have been taxable income, and it certainly goes towards the annual allowance that you are able to 'earn' each year without paying tax.

The difference is that (currently) your annual allowance at 55 is £7474, at 65 it is £9940 and at 75, it is £10090. The net result is that the older you get, the more you can receive without paying tax. Don't forget, if its best for you, you can defer taking your State pension and get a higher amount.

There are lots of pros and cons in doing that; for some people, it isn't the correct thing to do. Finally, it isn't what you earn.. it isn't even about how much you make, its what you keep.
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