State pension could be boosted by £1,300 next year but there are implications

State pension could be boosted by £1,300 next year but there are implications View Image

New analysis from Vanguard reveals that pensioners are set to be £1,300 better off next year because of the triple lock. September inflation figures have now been confirmed at 3.8%, lagging behind the 4.8% increase in wages, making the latter the most likely to be what affects the state pension increase next April.

While the rise may seem idyllic, it could come with a major and unexpected tax liability for some people. The increase would put the new state pension at a total of £12,548 a year, which is worryingly close to the personal allowance of £12,570.

The personal allowance is the limit of income people can take home each year before becoming liable for an income tax bill. While state pensio