Why do I have to pay?

Question

Income Tax on my Pension. This Goverment is very concerned that people save in a Pension Fund to help when they retire. I have worked all my life and have paid into my Pension, and now I find that I am having to pay tax on it. I know Pension contributions are Tax Free, but surely if the payments were Tax Free, say for pensions under £15,000 p/a then this would encourage people to save. I find it frustrating that when you reach an age when you find it more difficult to manage, this money grabbing Gov. of ours still wants it"s pound of flesh.

MR Sceptic, I agree with you about the over 65"s. Nobody pays tax on contributions BUT my money is invested and Gordon Brown certainly taxes any profit the investment accrues, thus reducing the benefit paid out, which of course is taxed again. So you think thats fair? My suggestion is that pensions below £15,000 p/a should not be taxed. When you are a pensioner with little chance of earning extra, then you might understand.

Answer 1

People are slowly waking up to the fact that Gordon Brown has destroyed the Pension System by taxing it. He has taken £100 Billion out since introducing taxes on pension investment return. He also taxes the other end when you get it paid. This is the man many are fawning over to become the next PM. They wont get my vote!

Answer 2

All income is taxable, whether from work, investment, pension or otherwise. The person who said you don't pay income tax after 65 is plain wrong.

You have answered the question yourself. Your pension contributions were not subject to tax - you have earned that income, but not paid any income tax on it. This is nothing new, all governments have done this.

Why do you think a pension should be treated any differently to other income?

Your answerers should remember - not all pensioners are struggling with poverty - there are more millionaires among the over-60s than any other age group. Do you want them exempt from income tax while working families struggle?

Answer 3

Some of the answerers on here do not read. Since when do Americans trade in £ sterling?

This is a British Pensioner being taxed unfairly. If I was Prime Minister, then my government would abolish income tax for all pensioners.

In fact the whole concept of income tax is abhorent tom me. The founding fathers in the USA had the right idea, to tax a person labour was wrong, which is why income tax in america is voluntary. It was never ratified in the 16th ammendment. ther is no law in america that compells you to pay income tax.

Not a single court has been able to present such a law in court.

We should have the same. Tax profit, not labour.

Answer 4

Yes, it stinks that the Gov demand taxes on your savings (pension money) and it's a big disgrace that this is how the elderly are treated! Shocking and worrying! It should be severely protested.

But, in reaction to some of the replies here:
Don't wear your frustrations out on those who seem to get some help...... wear it out on your government, wasting so much money on things that many people did not ask for. How much of your tax money went into war fare?

Answer 5

My father died 25yrs ago & he worked all his life. My mum had a widow pension,but cos she worked she had to pay tax on it!!!!
It is disgusting that we get penilised for working.
When if you were an illegal imigrant you get handed everything to you on a plate!
Now were the sense in that. The govenment like you say are money grabbing bastards,who take what they can to line the own pockets. My mum was questioned after she retired 7months ago for having saving which she used to pay off her morgage so she would have a bit of extra money in her pocket.
Its wrong & it needs to be sorted.

Answer 6

A lot of people don't realise that their superannuation gets taxed before they get it, and the first year their tax will be higher until the IR work out that their income is lower.
the personal allowance is supposed to cover the pension.
to tax someones hard earned savings is theft.

Answer 7

You earn the money and pay tax on it
You get your pension....which you have paid for from what was left of the money you earned after tax.....and it is taxed (double whammy)
Then you die and the government takes death duties as another tax......from the money you had in your savings and from pension which has now already been taxed twice,,,,(triple whammy)

Life (and death) is not fare.... is it?

Answer 8

you shouldn't have to pay. it's a tragedy that they find it OK to steal peoples pension money in this way (i do consider it stealing) i can't imagine the situation getting any better by the time i retire in approx 40 yrs and i find it really worrying.
good question but now I'm scared! :-(

Answer 9

stop complaining and start complaing about the welfare rolls. our gifts to Israel and the support of half of the world, don't forget our loyal Representatives in congress , senate etc with unlimited perks, who has never worked a day in their lives,
Tell me why they should even consider a old worn out codger like you and I when we have lived beyond our usefulness, when they can give to these whores and etc to birth little bastards for the welfare rolls? and who will grow up to vote for them, this may sound harsh but, it is at least truthful, do you deny that?

Answer 10

watch this film its about whats happening in america but affecting globaly,keep an open mind your question is part of a much bigger picture hopes this helps you.
http://video.google.co.uk/videoplay?docid=-6495462761605341661&q=martial+law