UK pensioners may face income tax on their state pensions by 2027, warns budget office.

The Office for Budget Responsibility warns that most UK pensioners could face income tax on their state pension payments by 2027. State pensions are projected to exceed the £12,570 tax-free threshold, potentially leading to annual tax bills over £100 for retirees whose only income is their pension. The rise is due to the triple lock system, which increases pensions annually based on earnings, inflation, or 2.5%, whichever is highest.

November 17, 2024
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