Jump to contentAllNewsSportCultureLifestyleMore than one million pensioners have been pushed into higher tax brackets due to fiscal drag (Lucy North/PA)Analysis shows that frozen tax thresholds and high inflation mean pensioners may need up to £64,000 more in their pension pots to match post-tax retirement incomes from five years ago. More than one million pensioners have been pushed into higher tax brackets due to fiscal drag, as tax thresholds have remained static while incomes have grown. Pensioners moving from the basic 20 per cent tax rate to the 40 per cent higher rate face additional tax bills, requiring larger savings to maintain their expected post-tax income. Analysis warns that up to 2.5 million British workers could be caught in the £100,000 tax trap by 2031 due to frozen personal allowances. Financial experts are urging the government to guarantee stability for core pension tax incentives and address outdated tax thresholds ahead of the Budget. In fullPensioners now need £64,000 more to retire than they did five years agoMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Why pensioners need £64,000 more to retire than they did in 2021
Jump to contentAllNewsSportCultureLifestyleMore than one million pensioners have been pushed into higher tax brackets due to fiscal drag (Lucy North/PA)Analysis shows that frozen tax thresholds and high inflation mean pensioners may need up to £64,000 more in their pension pots to match post-tax retirement incomes from five years ago. More than one million pensioners have been pushed into higher tax brackets due to fiscal drag, as tax thresholds have remained static while incomes have grown. Pensioners moving from the basic 20 per cent tax rate to the 40 per cent higher rate face additional tax bills, requiring larger savings to maintain their expected post-tax income. Analysis warns that up to 2.5 million British workers could be caught in the £100,000 tax trap by 2031 due to frozen personal allowances. Financial experts are urging the government to guarantee stability for core pension tax incentives and address outdated tax thresholds ahead of the Budget. In fullPensioners now need £64,000 more to retire than they did five years agoMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
