State pension warning as you could pay more tax in retirement after rise next week | Personal Finance | Finance
The freeing of the Personal Allowance at £12,570 since 2021/2022 means that the state pension payment has grown from 74 percent of the allowance to 84 percent for 2023/24, meaning pensioners will need just £1,969.80 of income before they start paying income tax.
Dean Butler, managing director for customer at Standard Life, told the Daily Record: “Pensioners are set to see a healthy boost to their incomes in a few days’ time as the state pension amount passes £10,000 for many for the first time.
“However, given the substantial state pension boost, it’s important to be aware of the implications this has in relation to the Personal Allowance which isn’t due to increase until April 2028.
“The Personal Allowance has remained flat in recent years and will gradually be bringing more and more people into the tax system as result.”
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