State pension nears tax threshold – how can the government fix it?

'While policy change would be welcome, individual action is just as crucial'

clock • 4 min read

While the government wrangles with the state pension hot potato, the looming tax creep highlights just how valuable financial advice can be in retirement, writes Laura Suter

For years, the state pension has been seen as a tax-free income for millions of retirees across the UK. But that long-held assumption is on increasingly shaky ground as the state pension edges closer to breaching the personal allowance. With the triple lock driving state pension increases and the personal allowance frozen until 2028, more pensioners could soon find themselves paying tax on their state pension alone – and for many, that will come as a nasty surprise. The crunch point This April, the full new state pension rose to £11,973 a year – just shy of the current personal allo...

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