One million pensioners to pay higher rate of income tax in retirement this year

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The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across Great Britain. The current official age of retirement is 66 and set to rise to 67 between 2027 and 2028. ‌

The UK Government recently confirmed that an estimated 8.51 million people of State Pension age paid income tax in the last financial year and as the Personal Allowance will remain frozen at £12,570 until April 2028, more pensioners are set to pay tax on their retirement income. ‌

Charlene Young, senior pensions and savings expert at AJ Bell , warns that over one million pensioners are set to pay the higher tax rate of either 40 per cent (£50,271 to £125,140) for those living in England or Wales and 42 per cent (£43,663 to £75,000) f