The UK State Pension is set to rise by 4.1 per cent next year in line with the Triple Lock mechanism
The New and Basic State Pensions are set to receive a 4.1 per cent increase from April next year, with additional elements seeing a 1.7 per cent rise, adhering to the Triple Lock mechanism. This ensures annual uplifts based on the highest of three figures: average earnings growth , CPI , or 2.5 per cent.
Furthermore, the government has confirmed that the Personal Allowance will stay fixed at £12,570 until the beginning of the 2028/29 fiscal year. The full New State Pension, which currently stands at £11,502 for the 2024/25 tax year, is projected to increase to £11,973 in 2025/26. For most people, taxes will be deducted automatically through PAYE for employment and on private pensions. However, for those who do not pay tax via these methods, HMRC will issue a tax bill the following summer, which must be paid by January of the subsequent year, as detailed by the Daily Record, reports the Express.
This isn't a new phenomenon. With the 12th year of auto-enrolment in workplaces now in progress, more people are set to benefit from increased income during retirement and will likely pay tax, typically deducted from their private pension.
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