Overview

• The full new State Pension rose by 4.1% in April to £11,973 a year, placing retirees just £597 below the £12,570 personal allowance
• Any earnings above the allowance are taxed at 20% up to £50,270, with HMRC set to pursue liabilities once pensioners breach the threshold
• The Low Incomes Tax Reform Group is calling on DWP and HMRC to include warning notices in spring pension notification letters for those nearing the limit
• Finance commentator Martin Lewis highlights that marginal tax rates still leave retirees with net gains on extra income and notes Pension Credit tops up many low-income pensioners
• Experts caution that frozen tax thresholds combined with annual triple lock increases could push more pensioners into taxable income and are debating reforms from means testing to pension age adjustments