Millions of workers born before 1969 face 'retirement tax' under Labour

James Rodger
·2-min read
Shock new data from Shawbrook Bank shows 35 per cent of women aged between 55 to 68 are unaware of potential tax implications.
-Credit: (Image: Reach Publishing Services Limited)


As many as a third of over-55s are unaware of whether they’ll be taxed on their retirement income. Shock new data from Shawbrook Bank shows 35 per cent of women aged between 55 to 68 are unaware of potential tax implications.

That is compared to 23 per cent of men the same age (born before 1969). The survey, of 2,011 UK consumers aged between 55 and 68, found that while almost 46% of near-retirees are aware they will face taxes in retirement, only a quarter (25%) are certain, and 22% are unsure but believe it is likely.

Shawbrook stated that its findings suggest many people "could be in for a rude awakening". Shawbrook’s research also found that 77% of near-retirees view a savings account as an integral part of their retirement plan. With the personal savings allowance (PSA) frozen, however, many people may find themselves with unexpected tax bills on their savings.

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Shawbrook’s research found that 77% of near-retirees view a savings account as an integral part of their retirement plan. However, with the Personal Savings Allowance (PSA) frozen, many may also find themselves hit with unexpected tax bills on their savings.

Head of savings at Shawbrook, Adam Thrower, said: "A shock tax bill is never welcome, especially for those planning or entering retirement. It's essential to understand that income tax still applies in retirement, and savers should consider how best to structure their savings."

The PSA is £1,000 for standard-rate taxpayers, but this drops to just £500 for higher earners, with additional-rate taxpayers receiving no allowance at all. Mr Thrower went on, warning over-55s up and down the country: "As are a powerful way to keep savings tax-free, and with competitive interest rates, savers could be caught off guard by how much tax they owe if they don’t plan carefully."

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