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A state pension warning has been issued as 1.1 million retirees face being stung with a HMRC tax demand. More than 1.1 million people over Department for Work and Pensions, or DWP, state pension age - born before 1959 - who could be hit with a hefty tax bill.

Around 1,160,000 people can expect to pay tax on income earned from their savings in 2025 and 2026, according to investment platform AJ Bell. They show the figure to jump significantly in the last few years, growing from 493,000 in 2022-23, to 953,000 in 2023-24, and 1,090,000 in 2024-25.

2,640,000 taxpayers are expected to pay income tax on cash savings interest earned in this financial year. AJ Bell said. "Most people have a personal savings allowance – £500 or £1,000 for higher and basic rate taxpayers respectively

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