Latest forecasts from the Office for Budget Responsibility showed how the state pension is set to rise by 4.6 per cent next April.
Millions of retirees may soon face a "bizarre tax cliff edge" where a portion of their rising state pension is taxed, potentially requiring them to pay some of it back to HMRC. This is due to the state pension increases outpacing frozen income tax thresholds. The state pension is forecast to rise by 4.6% next April, potentially exceeding the personal allowance by 2027.
