With your pension increase you now get less than last year. My tax number dropped to 79 from 117 so the tax increase swallows my increase in my private pension and more. Can't wait till next week when my state pension arrives. I know, it could be worse some don't have a private pension but when you have paid in since the 70's it's annoying.......a bit
Our tax system is unfair on many levels, rather than rigid thresholds for tax rates there should be a sliding scale. Nobody should get a pay rise which actually makes them poorer, whether it's pensions or salary for working people, it's just plain daft. I just got a pay rise on my BCSSS pension, the princely sum of £6 a year, been struggling to think how to spend it
Nobody is getting a pay rise that makes them poorer. That's not how tax works. For that to be the case, the marginal tax rate would have to he over 100%. The amount from the private pension has gone down because that's the income that is being hit with tax, and it is taking into account the fact that state pension went up. Overall, the OP is not poorer as a result.
I think the only example is if you have kids in nursery then a raise which takes you above £100k can indirectly make you substantially poorer due to loss of free childcare hours (albeit it's in your power to regain those free hours via pension contributions).
