Millions of state pensioners in the UK may soon find themselves paying income tax on their pensions for the first time. According to Deutsche Bank<\/a><\/strong> forecasts, state pension payments could increase by 5.5% in April 2026, pushing them above the current tax-free personal allowance and triggering unexpected tax liabilities.<\/p>\n\n\n\n
State pension <\/a>payments are expected to rise to \u00a312,631 in April 2026, surpassing the \u00a312,570 tax-free personal allowance, according to Deutsche Bank. This would mean pensioners receiving only the state pension would have to start paying income tax<\/strong>\u2014an obligation many have never faced before.<\/p>\n\n\n\n
Campaigners and financial analysts have expressed concerns that this additional tax burden will hit pensioners at a time when many are already struggling with higher living costs.<\/p>\n\n\n\n
Dennis Reed<\/strong>, director of Silver Voices, highlighted the impact on those reliant on fixed incomes. \u201cOlder people on fixed incomes are facing a cruel double whammy, squeezing their living standards to the point of poverty<\/a>. The research nails the lie that older people will be better off under Labour this year.\u201d he said.<\/p>\n\n\n\n