Overview

• Official data show the typical disposable income of retired households fell to £29,728 in 2023/24, down £558 a year versus 2020/21.
• The triple lock points to a 4.7% uprating next April, lifting the full new state pension to about £12,535 and delivering roughly £562 more a year.
• The new rate nears the £12,570 personal allowance, with reports that the full state pension will breach the tax‑free threshold from 2027, increasing the number of pensioners paying income tax.
• A separate 2027 change would bring pension pots into estates for inheritance tax, meaning savings left on death could face charges of up to 40%.
• People on the pre‑2016 basic state pension receive a smaller cash boost and are set to miss about £130 compared with the full new rate, as the state pension age rise to 67 is phased in between 2026 and 2028 for those born after March 1961.