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 tax-free lump sum from your private pensions, the extra is added to any other income you have and taxed.
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