- The full UK state pension is projected to rise by £489 next year to over £13,036, taking it above the £12,570 tax-free personal allowance threshold for the first time.
- Pensioners relying solely on the state pension as their income will not be required to pay income tax on the amount above the threshold.
- Retirees with supplementary income from private pensions, savings interest, investments, or work will likely face tax obligations on their earnings.
- Business Secretary Jonathan Reynolds noted that most UK pensioners possess private pensions or extra income alongside state pension provision.
- Financial experts advise pensioners to review their overall income and tax positions ahead of the upcoming Budget to avoid unexpected tax bills.
IN FULL
Will I pay income tax on my state pension after £489-a-year rise?
