READ MORE UK faces first snow of April with flurries and -7C ‘lasting three days’<\/strong><\/a><\/p>\nAlthough the state pension is taxed, it is not taxed at the point of payment. Instead, HMRC applies tax through the pensioner\u2019s tax code, often collecting it from other sources like private pensions. This method can lead to confusion and surprise tax bills, particularly for those who only recently began receiving both state and private pension income.<\/p>\n
Analysis by Sir Steve Webb, a former pensions minister, found that before April 2025, around 249,000 pensioners were already paying at least \u00a31,000 in tax on their state pensions alone. Of these, over 10,000 retirees were paying \u00a32,000 or more.<\/p>\n
Mr Greer added: \u201cRetirees are increasingly finding themselves caught paying ever increasing amounts of tax. The cost of maintaining a decent standard of living in retirement has risen sharply in recent years, yet income tax thresholds have remained unchanged.<\/p>\n
\u201cAs a result, pensioners are now paying significantly more tax than they were just a few years ago \u2014 not because their incomes have grown, but because the system hasn\u2019t kept pace with inflation.<\/p>\n
\u201cThis creeping tax burden risks undermining retirement security for thousands of people who did everything right. They saved diligently, planned carefully, and expected a stable system in return. Instead, they are being taxed more heavily simply to stand still.\u201d<\/p>\n
The new \u201cfull\u201d state pension rose to \u00a311,973 this month thanks to a 4.1 per cent \u201ctriple lock\u201d pay rise.<\/p>\n","protected":false},"excerpt":{"rendered":"Pensioners are paying \u00a32,700 more in tax to live comfortably compared to four years ago thanks to a…\n","protected":false},"author":2,"featured_media":21795,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2499,16,15,961],"class_list":{"0":"post-21794","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-uk","12":"tag-united-kingdom","13":"tag-your-money"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114341633397021926","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/21794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=21794"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/21794\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/21795"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=21794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=21794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=21794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Pensioners](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/0_statepension4.jpg\")
Pensioners are paying \u00a32,700 more in tax to live comfortably compared to four years ago thanks to a stealth raid on incomes, the Telegraph reports.<\/p>\n