The article discusses the rising number of pensioners subject to income tax due to frozen tax thresholds amidst increasing state pensions. An additional 420,000 retirees will join the tax bracket this fiscal year, totaling 8.7 million. The personal allowance, unchanged since 2021, combined with rising state pensions under the triple lock principle, leads to more individuals paying tax. By April 2027, the state pension is projected to surpass the personal allowance, compelling many to pay tax on their income, despite the intent to shield pensions from inflation.
"While the country's demographic shift naturally increases the number of pensioners liable for income tax, fiscal drag is unequivocally pulling hundreds of thousands more into the income tax bracket each year."
"By April 2027, the full new state pension is expected to exceed the personal allowance, rising to £12,885.50 - £315.50 above the threshold."
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