Barratts/S&G Barratts/EMPICS Archive
New research has revealed that the average pensioner pays an astonishing £111,400 in tax in their retirement. That works out at £5,864 a year for a combination of income tax, VAT, council tax and the rest. Less well-off pensioners are in even more trouble, because while their overall bill is lower, they pay a far larger percentage of their income in tax: the poorest pensioners give 42% of their income straight back to the taxman.
So can you do anything about this?