personal finance

State pension alert: Deferred payments may raise income tax bills – full details on costs

A person’s annual income can consist of a number of sources, which includes state and private pensions, earnings from employment, taxable benefits and any other income from investments or savings.

A state pension is unlikely to contribute much to a person’s total earnings, as the most a person could get at the moment is £175.20 per week, just over £9,000 a year.

However, retirees can take action to boost their state pension income over the “full” amount and this could hit unexpecting pensioners with a large tax bill.

Retirees have the option of deferring their state pension, which means opting not to receive income when reaching their retirement age.

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