Do Pensioners pay tax on their pension

[Trexxxy]

It all varies based on countries, I honestly think they do , I'm the government would have made some deductions from the pension funds sent to the pensioners. However I'm sure that some don't and the government allow some sort of leeway for the pensioners.

 

[Nicklas22]

Normally, any pension paid to you is treated as earned income and may be liable to income tax. Pension income paid to you is normally treated as earned income for income tax purposes, although you don't pay any National Insurance contributions on your pension income.

 

[Samuel77]

You know in Nigeria our government has their own way of doing things, when you have retire from an officer and you start collecting your pension, your pension amount will be told to you and when it is time to collect your money, they will deduct the tax on their own before giving you your pension.

 

[HIFSA LAHORI]

No, there is no Tax. Both my mother and father get pension but no tax has ever been deducted.

 

[gammarays]

I don't think it's moral to deduct tax from pensioners because they paid in full during their active days. Also pension funds should be classified as gifts that shouldn't be taxed. However, in my country, value added tax is applicable to everyone irrespective of your status as a citizen. It's taken from the cost of any goods and services you purchase.

 

[Richard92]

I do not really know whether pensioners pay taxes but what I know that as a citizen of a country it is your responsibility to pay taxes, with this I am very sure that pensioners pay taxes. It is very important for citizens of a country to pay taxes, it is a national obligation that must me met by every citizens of a country

 

[Henrywrites]

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.

You don't pay taxes on pensions unless it's a special policy by the government and that will be wickedness on their part. You have paid taxes on your personal income and you can't pay again for your pensions.

 

[Maliha]

Yes I am agreed because most of the countries rules are different and changed.so they work under the rules of the country as our country pensioners pay taxes from their pensions due to the fix rules and in other countries just workers and employee's pay the taxes not the pensioners so we don't know that from which country you belong than you should ask and confirm from the elders.

 

[Adebayonle7]

I thought taxes are only paid on current earnings and like for those in service. Since pensions are a compensation for long and good services when the individuals were in-service, I do not think they should be required to pay taxes when they receive their pensions. In Nigerian where I live, I know about the PAYEE TAX (pay as your earn) which is most likely deducted and paid at the end of each work month. I do not know if this is applicable to pensioners.

 

[Taimoor Jutt]

May be may be not. But i really don't know anything about that. But I think tax only deduce when you work and get extra pay and there will be all taxes in your pay. But after pension no tax will be cut off by your pension I think so.

 

[WhiteHouse]

pensioners don't pay tax I don't think so at least from the stipends they are sent every month they don't deduct any tax or additional fees To it in my country, Nigeria, I don't know about other countries though.

 

[Blue house]

Regularly, any pension paid to you is treated as procured pay and might be obligated to personal assessment. Benefits pay paid to you is ordinarily treated as acquired pay for annual assessment purposes, in spite of the fact that you don't pay any National Insurance commitments on your annuity pay.

 

[Mawome]

They should, I believe that everybody pays taxe, in one way or the other, if you are human and you are alive you pay taxe, in my country taxes are included in our electricity bills, and electricity is something you can't do without, everyone needs it everyday, so I think pensioners pay taxes

 

[Rainlover207]

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.

 

[Sanusi]

Tax is being removed from monthly salary so once it's removed i don't think there is any Cogent reason they should remove tax from pension, so once pension is being paid I don't think there is any avenue to remove tax from pension.

 

[Lyrrex]

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.

 

[Veetos12]

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.

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.

Thank you for this beautiful piece information shared here. I am very sure that this submission will help many in understanding the concept of pension scheme in private and government sectors.

 

[Profuk57]

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.

No, I don't think.
Tax will be deducted from your pension.
Because when you were serving. In the civil service or in the institution you worked. The needed tax was colleted, so I don't think any dorm of tax will be deducted from your pension.

 

[Seun4luv]

The way to avoid paying too much tax on your pension income is to aim to take only the amount you need in each tax year. Put simply, the lower you can keep your income, the less tax you will pay.

 

[Chumzy]

When payment is received I think tax should be normally deducted. It may also depend on the tax law of the country in question. For Nigeria I think there is tax paid when they receive the pension.