Pensioners can save thousands by managing income tax and pension withdrawals

Pensioners face increased income tax due to frozen allowances and rising state pensions, potentially costing thousands. The state pension will rise by 4.8% in April, bringing it close to the frozen personal allowance. Chancellor Rachel Reeves has extended the tax threshold freeze to 2031, meaning more retirees will pay income tax. Strategies to mitigate tax include careful management of pension withdrawals, utilizing ISA allowances, and understanding inheritance tax implications on pensions, which will be introduced in April 2027.