The upcoming 4.1% state pension rise could actually take a chunk out of retiree’s income - particularly if they have more than one pension
In Rachel Reeves’ autumn budget it was confirmed that the state pension would rise by 4.1% in April, an equivalent of around £475 a year for those on the new state pension according to MSE. However, recent warnings on social media claimed this would actually cut pensioner’s income by £130 a month.
Everything earned over this amount will result in a 20% income tax bill, which is the basic rate, while earning over £50,000 will start incurring a 40% income tax bill at the higher rate and yearly income over £125,140 is taxed at the additional 45% rate. Pensioners will probably need to be very familiar with these rates in the near future as the April rise means the yearly new state pension will be £12,016.75.
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