The proportion of total savings interest tax paid by those aged over 65 is set to increase from 39% to 41% this tax year, according to an analysis by Paragon Bank (Image: Getty Images)

Pensioners are bracing themselves for a tax hike of over 200% on the interest accrued from their savings, as revealed by an analysis conducted by Paragon Bank. Using data sourced from HMRC, the bank found that savers aged 65 and over are expected to fork out £2.5bn in taxes on their savings interest this tax year. ‌

This represents a jaw-dropping 215% increase compared to the sum paid in the 2022/23 tax yea r. Tax receipts from savers below the age of 65 are also projected to see a substantial rise, up 186% to £3.6bn during the same timeframe. ‌

However, the percentage of total savings inter

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