Tax and your retirement income

The tax you pay depends on the source of the income.

A few points to bear in mind:

• When you’re retired, you’ll still qualify for your personal allowance. This is the amount you can earn each year before you pay tax.
• If you receive multiple sources of income, like the State Pension, private pensions and income from work, these are added together.
• If you take more than the maximum lump sum from your private pensions, the extra is added to any other income you have and taxed.