Do Pensioners pay tax on their pension

[Erik4150]

I plan to retire at the age of 60 and start collecting pensions every month.
I want to know if my pension fund is regarded as a taxable income. Will money be deducted from my pensions as tax or not.

 

[Kayzzy3]

I plan to retire at the age of 60 and start collecting pensions every month.
I want to know if my pension fund is regarded as a taxable income. Will money be deducted from my pensions as tax or not.

Directly they don't, This is because tax were deducted from workers pay during their service years, although the pension management company pay tax to the government on the fees the charge pensioners for managing their funds.

 

[Aqsa Shahid]

No, I don't think that tax will be deducted from anyone's pension. Because government employees pay tax from their salaries. But this law if tax doesn't apply to pension because pensioners don't have any other option of earning in the Future. They are mostly surviving on their pension.

 

[Patrik]

You don't pay taxes for your pension because you don't work anymore, the pension you receive is net, which means it receives no cuts or anything like that, you usually know how much you get before retiring

 

[Abibatabosede]

Tax is paid by pension scheme management not individually but if at later time the money is invested in any business,then the money as become a taxable income automatically,since the money will be increasing.

 

[Naz Noshin]

Ok

I plan to retire at the age of 60 and start collecting pensions every month.
I want to know if my pension fund is regarded as a taxable income. Will money be deducted from my pensions as tax or not.

I think there are different rules in every country. In our country, people don't pay tax on pension. Means government doesn't take tax on pension. Buy in different countries, may be people have to pay tax . Let's check other people's comments to know about this matter.

 

[Nurudeen]

You don't pay tax immediately you start getting your pension from government because during your active years in service, tax is being deducted monthly from your salary and it's part of the thing they use in maintaining some part of the society. So far your pension is not a workable salary, they can't deduct any tax from it again

 

[Alexandoy]

The pension here is not taxable because the government said that pensioners should be protected not only from the taxation but also from the diminishing cost of money. There are increases in the pension every 3 to 5 years. In my experience of receiving pension for 5 years there is just one increase of 1,000 pesos (about $20) and there should be one this year although we understand that we are in a pandemic era.

 

[Sariana23]

I have read some information about it and if there are countries where taxes are paid, depending on the amount they charge in your pension. In my country, regardless of the amount they charge monthly, this ISLR payment is not made. Now if the amount exceeds a certain amount, they must make a declaration but still do not pay the tax.

 

[Mujahid12]

I plan to retire at the age of 60 and start collecting pensions every month.
I want to know if my pension fund is regarded as a taxable income. Will money be deducted from my pensions as tax or not.

Yeah absolutely taxes cut from pension when pension came into the bank then bank cut all taxes and then paid you and government job pension cut tax but not big quantity that the big advantage of government job.

 

[Donkiz]

As a worker, government deducts tax from your salary on monthly basis during your active days, so it will amount to wickedness for them to still tax pension which is part of the your money deducted from your salary that has already been taxed. So nobody deducts any tax from pensions.

 

[Josemendez]

I think they will still pay tax on their pension. Normally the tax will be deducted before the pension is paid .this is to help the government to be able to carry on development works . Also , since the pension is still coming from the government , it is normal for them to deduct tax.

 

[btaliat]

In my country, before the payment is made, tax and other levies would have been deducted. But to be frank, I don't think they should be deducting tax from them since they are no longer productive.

 

[Sincerem]

Pensioners do pay minimal pension fees, as a result of the pension management paying tax to the government. Apart from that, they don't pay tax the way other civil servants pay tax every month. They measure their pension salary and take little from it to settle tax.

 

[Hammad1245]

I plan to retire at the age of 60 and start collecting pensions every month.
I want to know if my pension fund is regarded as a taxable income. Will money be deducted from my pensions as tax or not.

I don't know about it. According to my idea pensioners don't pay tax. Because they are getting pension as a reward of previous service. Do you agree with me? If not tell me why. Pensioners get basic pay.

 

[Goodday]

In my country, pensioners don't pay direct tax because the tax is always paid by the pension scheme as a whole but not the individuals. But maybe they may pay other bank charges when the money is received through a particular bank.

 

[Erik4150]

No, I don't think that tax will be deducted from anyone's pension. Because government employees pay tax from their salaries. But this law if tax doesn't apply to pension because pensioners don't have any other option of earning in the Future. They are mostly surviving on their pension.

Yes they probably will not be paying tax on their pension because they are no longer working. Only working people pay tax and so pensioners can't be taxed after spending more than 30 years in service paying tax from their salaries.

 

[Ojonuyo]

Your question is tricky but anyway I do not think pensioner would pay tax, because they are no longer considered as government worker but as retired worker. Paying tax would also appear unfair to them and it is a means of reducing their pension which is unfair.

 

[Oloritoks]

Pensioners do pay tax but not as much as those that are not earning pension do in some countries special consideration is being given to them by exempting them from the tax net because they are no more productive at an old age

Post automatically merged: Jan 12, 2021

Pensioners do pay tax but not as much as those that are not earning pension do in some countries special consideration is being given to them by exempting them from the tax net because they are no more productive at an old age

 

[Highflyer]

State Pensions that you receive are treated as earned income for income tax purposes, although you are no longer liable to pay any further National Insurance contributions once you have reached State Pension age. ... However, it is always paid to you 'gross' (that is, no tax is deducted before you receive it).The state pension is taxable income, but you receive it gross. This means no tax is deducted at source (that is, before it is paid to you) from the state pension.