- Analysis shows that frozen tax thresholds and high inflation mean pensioners may need up to £64,000 more in their pension pots to match post-tax retirement incomes from five years ago.
- More than one million pensioners have been pushed into higher tax brackets due to fiscal drag, as tax thresholds have remained static while incomes have grown.
- Pensioners moving from the basic 20 per cent tax rate to the 40 per cent higher rate face additional tax bills, requiring larger savings to maintain their expected post-tax income.
- Analysis warns that up to 2.5 million British workers could be caught in the £100,000 tax trap by 2031 due to frozen personal allowances.
- Financial experts are urging the government to guarantee stability for core pension tax incentives and address outdated tax thresholds ahead of the Budget.
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