- More pensioners will be paying more income tax from this April
- You can use your Isa to top up your income tax-free
- Make the most of all your allowances and of the pensions tax-free lump sum
The state pension will rise by 8.5 per cent in April, a welcome increase given the rising cost of living. However, the backdrop of a ‘permafreeze’ in income tax thresholds means that the state pension will now take up an even larger portion of the personal income tax allowance. So careful tax planning around your savings and investments is increasingly important to achieve a sustainable retirement income.
Gary Smith, partner in Financial Planning at Evelyn Partners, says: “By keeping an eye on their exemptions and allowances, savers can make sure they are making the most of their retirement savings by not handing excess sums over to HMRC and the Treasury.”