In our weekly series, readers can email in with any questions about retirement and pension savings to be answered by our expert, Rachel Vahey, head of public policy at investment platform AJ Bell. There is nothing she does not know about pensions. If you have a question for her, email us at money@theipaper.com.
Question: I have been receiving my state pension for a couple of years now. It’s been really good to see it increase steadily over that time. But I have seen a couple of articles that it will be taxed next year. Is that right? What can I do to avoid that?
Answer: The state pension is the foundation of many people’s retirement income, so it is important to understand how much you may receive, how it increases and when tax could become due.
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The full new state pension is currently £241.30 a week, or around £12,548 a year. The amount you receive depends on your National Insurance record, and you will usually need 35 qualifying years to get the full rate. The state pension age is also gradually rising from 66 to 67 by March 2028.
