Tax and retirement: sorting out your tax codes when you reach 65 or retire (part 1)
When you retire your tax codes are likely to change and you could get several different codes. What should you expect?
When you retire, you probably look forward to being able to take it easy or to do what you want; whether that’s taking up new hobbies and activities or travelling to new places. In reality, retiring will involve a bit of form filling before you can take it easy. You’ll have to claim your state pension, work out how you want to take your company or private pension and make sure you’re paying the right tax.
Undertanding the annuity code of conduct - introduced in 2013
Make sure you understand how the shopping around code will help you get the maximum pension income.
Every year hundreds of thousands of people miss out on money in their retirement. Why? Because they buy an annuity (which generates a retirement income from a pension pot) from the company they’ve saved with, rather than shopping around. Figures show that more than half (55%) don’t shop around, either because they don’t know they can or they don’t know how to. A new code taking effect from March 1st 2013 should help.
When is the winter fuel allowance or winter fuel payment paid and how much is it?
Starting in November, every year, millions of pensioners are sent letters telling them they’re entitled to between £100 and £300 towards their winter fuel bills. The amount you receive depends on your age and is worked out on a ‘per household’ basis. The winter fuel payment is meant to help with fuel costs (although you can spend it on whatever you want). How can you claim it?