None
EN
DWP State Pension could top £20,500 by 2046 but HMRC tax bills could hit £1,598
['Jade Wright']
The Northern Echo | News
By 2046, almost £8,000 of the State Pension could be taxable, creating an annual tax bill of around £1,598.
The full new State Pension is forecast to exceed the , meaning some pensioners could begin paying income tax on part of their State Pension if they have no other allowances available.
2031/32: Full State Pension reaches £14,196 a year, with £1,626 potentially taxable, creating an estimated £325 annual tax bill .
2046/47: Full State Pension climbs to £20,561, leaving £7,991 subject to income tax and creating a potential £1,598 annual tax bill.
The projections are based on modelling rather than government policy and assume continued annual State Pension increases averaging 2.5%.