Retirees are facing huge losses in spending power as inflation — which is tipped to surge to above 8 per cent this year — eats away at the value of their income. It means that the new state pension will be worth £185.15 a week from April. The gap between prices and pension pay will grow further if inflation hits 7.25 per cent, as the Bank of England has predicted. The £1.07 million allowance dictates how big a pension pot can be before savers have to pay tax on contributions. Yet the freeze means that retirees with pension pots over this amount will face charges on an extra £189,100.

Source: Daily Mail March 09, 2022 22:23 UTC