![\"United](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/united-kingdom-finances-2026-business-concept-calculator-and-british-pounds-date-2026-6798808.jpg\" "\\"United")
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More pensioners will be closer to the Personal Allowance threshold from April (Image: Getty)<\/p>\n
State pensioners have been issued a warning over a triple lock change from April that will bring more retirees closer to the Personal Allowance threshold.<\/p>\n
You pay income tax<\/a> on your State Pension<\/a> when your total income exceeds your tax-free Personal Allowance<\/a>, which is still frozen at \u00a312,570, and would owe 20% of every \u00a31 that exceeds the threshold. Pensioners who have no other income, such as from private pensions and earnings normally wouldn\u2019t earn enough to exceed this threshold, but for those who have other income, either from savings or still being in work, for example, along with State Pension payments<\/a>, will already be subject to tax.<\/p>\n The State Pension is due to rise by 4.8%<\/a> at the start of the new tax year on April 6, in line with the triple lock<\/a>. The triple lock determines the new State Pension rates each year based on whichever is the highest out of three factors – the consumer price index (CPI) measure of inflation<\/a> (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%.<\/p>\n Read More: Households on benefits can get \u00a31,200 handout from HMRC <\/a><\/p>\n Read More: State pensioners issued DWP update ahead of PIP reforms <\/a><\/p>\n As average wage growth was the highest out of these three factors at 4.8%, State Pension rates will rise by this amount from April.<\/p>\n The increase will see the full new State Pension increase to \u00a312,547.60 (up from \u00a311,973), bringing it perilously close to the frozen Personal Allowance threshold at \u00a312,570.<\/p>\n While Chancellor Rachel Reeves<\/a> has confirmed pensioners with no other income won\u2019t have to pay tax on their State Pension alone if the triple lock takes the State Pension above the \u00a312,570 threshold – which it is expected to from April 2027 – this won\u2019t apply to those who have additional income.<\/p>\n As such, financial experts are urging pensioners on low incomes to check their eligibility for Pension Credit, which can boost weekly income, while those who are still working should consider making additional private pension contributions to increase their retirement savings.<\/p>\n Derence Lee, Chief Finance Officer at Shepherds Friendly<\/a>, said: \u201cThe triple lock has played a vital role in helping pensioners keep pace with the high inflation seen in recent years. However, if the tax-free allowance remains frozen, some of the recent State Pension increases could effectively be taken back through income tax.<\/p>\n \u201cFor pensioners who rely mainly on their State Pension to cover everyday essentials, even a small tax bill could make a noticeable difference to their finances.\u201d<\/p>\n \u201cClear guidance from the government on pension taxation and savings would give retirees certainty and peace of mind, but until then, pensioners should check whether they\u2019re eligible for Pension Credit<\/a>, which can top up weekly income for those on lower earnings.<\/p>\n “Those still working part-time may wish to consider additional private pension contributions, while anyone approaching retirement should consider reviewing how ISAs, workplace pensions and diversified investments can help build a more resilient income stream.\u201d<\/p>\n \u201cBy preparing today, pensioners give themselves the best chance to ensure their income keeps pace with costs and maintain a sense of financial stability.\u201d<\/p>\n