Retired households face 15.4% tax rate hit on income - research

The analysis of the most recent government data suggested that their average bill for direct taxes is £4,961 annually, with the total direct tax taken from retired households adding up to more than £57.22bn. iSIPP found the average gross income of retired households was £32,265 with benefits including the state pension accounting for 41% of total income. According to the research, income from private pensions accounted for 43% of gross income. Income tax and council tax plus a small amount of National Insurance (NI) contributions took £4,961 off retired households' income. The bigg...