22 June 2017
Retirees ‘paid £7,400 in tax last year’
The average retired household paid £7,400 in tax last year, a new analysis reveals, equating to 30% of their annual income.
After reviewing figures from the Office for National Statistics for the 2015/16 financial year, Prudential said the total direct and indirect tax bill for the UK's 7.1 million retired households was £52.7 billion.
Over the year to April 2016, it said the typical tax bill for a retired household climbed by roughly £400.
But there was some positive news, with the average income for these households climbing by around £1,200 to just over £25,000, when things like the state pension, private pensions, benefits and other earnings were factored in.
Stan Russell, a retirement income expert at Prudential, said: "No longer working doesn't mean you'll no longer be paying taxes, and many retired people will still need to consider income tax bills as well as all the other indirect taxation on expenditure that they will continue to face when they give up work."