View Image

Many state pensioners could be in for a shock as they may face a new tax bill in the coming years. The triple lock mechanism is increasing payments each April, with rates going up in line with the highest of 2.5 per cent, inflation or the rise in average earnings.

But this means that the full new state pension is edging ever closer to using up the personal allowance. The personal allowance is the maximum amount you can earn each year without paying income tax, and is currently set at £12,570.

The full new state pension stands at £230.25 a week, or £11,973 annually, with payment rates expected to rise by 4.7 per cent next April due to the triple lock. Lily Megson-Harvey, policy director at My Pension Expert, said: "With the full new state pension set to reach around £12,534 ne

See Full Page