State pensioners warned over £25,000 HMRC limit as 'you could pay a lot more tax'

State pensioners have been encouraged to review their finances as they could find themselves pushed into a higher tax bracket. Payment rates for the state pension are expected to rise by 4.8 percent from April next year, courtesy of the triple lock.

The triple lock guarantees that state pension rates go up each April in line with whichever is highest out of 2.5 percent, inflation or the increase in average earnings. However, if your income rises, you might find yourself moved into a higher tax bracket.

Chris Ball, CEO of Hoxton Wealth , has encouraged pensioners to take full advantage of their tax-free allowances. He said: "My general advice to all pensioners: Maximise your and any spouse's personal allowances to make sure you're making the most of all of your different pools of income