Just because you are no longer working doesn't necessarily mean that you don't have to pay tax any more. How much tax you pay depends very much on your personal circumstances and the tax rules in place throughout your retirement. Please remember that tax rules can change. You should talk to a financial adviser about your personal situation.
Almost everyone in the UK has a personal allowance. If your total income is below that level, you won't pay tax on it. However, if your income is more than your personal allowance, you will pay tax on your pension income under PAYE rules just as you did when you were working. We deduct tax from your income before we pay the money into your account.
If you have any tax queries or would like to find out more, you can go to the HM Revenue & Customs website: www.hmrc.gov.uk
We strongly recommend that you speak to a financial adviser before making any decisions about your retirement. If you want financial advice, please contact your financial adviser. If you don't have a financial adviser you can find one via www.unbiased.co.uk.
If you have any queries or need information about our retirement products, talk to a member of our team by calling 0800 068 4076.
The inheritance tax threshold for 2013/2014 and 2014/2015 is £325,000 for a single person. In addition married couples and civil partners can pass property tax-free to their surviving partner when they die. When the second partner dies, their executors or representatives can also claim any unused proportion of their late partners inheritance tax allowance. So people who are married or in a civil partnership can potentially leave as much as £650,000 after the second partner dies before inheritance tax is due. Tax rules may change in the future.
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