I'm very close to retirement and I would like to know my pension options. I will qualify for basic state pension and I would like to know what are the benefits I get. Since pensions are taxed who gets tax reliefs? How do I qualify for a second state pension? I have no other pension so this information would be very useful to me. Thank you.
Every pension is taxable, but depending on pension type tax is payed differently. It's possible not to pay tax if your income is lower than tax. But if it's higher then your tax office calculates how much you're going to pay. Since you have no other pension you will have to pay tax through Self Assessment after you retire. Every tax year you will be informed about your pension and tax amount. Tax reliefs are possible but there are some rules. If you pay a high tax you can give a part of your icome to charity. There is also a possibility of maintenance tax relief and you can claim it from your tax office. This would reduce your tax for about 10 percent. There is also Married couple's allowance to reduce a tax and it depends on time of your marriage. Find out about this option according to marriage date. State pension have benefits like Winter Fuel, Cold Weather, Christmas bonus and other payments. When you claim your basic state pension check if you qualify for a second state pension. It depends on your earnings and contributions you've made.
