A new study predicts that up to ten million pensioners in the UK could be paying income tax by 2032 due to a combination of factors, including static income tax thresholds, an aging population, and the triple lock on state pension increases. Experts warn that this trend will disproportionately impact those already struggling financially.
A shocking new study has revealed that by 2032 up to ten million older citizens could be paying income tax. The current policies of the Labour Party government are likely to see three-quarters of pensioners caught in the tax net, as indicated by recent data.
Webb conveys his concerns: "The proportion of pensioners dragged into the tax net has risen sharply in recent years as large cash increases in the pension have been set against a backdrop of frozen tax thresholds. Although future pension rises are likely to be smaller, if thresholds continue to be frozen, more and more pensioners will end up paying tax."
Meanwhile, John O'Connell of the TaxPayers' Alliance has criticised the impact of unwavering thresholds, calling the current situation a "disastrous policy". O'Connell remarked: "Frozen thresholds are causing misery for taxpayers of all stripes. Pensioners too are increasingly feeling the strain as they see their nest eggs chipped away at by this disastrous policy.", reports Birmingham Live.
PENSIONERS INCOME TAX AGEING POPULATION STATE PENSIONS FINANCIAL HARDSHIP
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