Stealth pension tax started by Tories will see 900,000 pay tax for first time
manchestereveningnews.co.ukThe Department for Work and Pensions (DWP) has revealed that nearly 12.7 million people across Great Britain are currently of State Pension age.
However, Adam Pope, a retirement expert from Spencer Churchill Claims Advice, has issued a warning that close to two million of these individuals will experience the financial effects of the Personal Allowance freeze within the next four years (by 2028).
Out of the total number, approximately 8.1 million (64%) are paying tax in retirement, primarily due to extra income from workplace or private pensions on top of their State Pension.
It is predicted that almost 900,000 more individuals will surpass the Personal Allowance threshold of £12,570 this year along, an economic policy started under the Conservatives often described as fiscal drag, or a stealth tax.
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