The amount of tax the government takes from pensioners has reached 30% of their incomes, and it’s not stopped rising yet.
Pensioners are filling the taxman’s coffers with almost a third of their income – handing over an average of £7,400 each year.
The total bill for direct and indirect taxes for the UK’s retired households in the 2015-16 tax year was £52.7billion, according to analysis from Prudential of figures from the Office for National Statistics.
Direct taxes include income tax and council tax, costing an average £3,050, and indirect taxes include VAT, insurance premium tax and vehicle excise duty which cost an average £4,360.
Tax bills increased by around £400 per household in the year to April 2016, a £1.7bn boost to the Inland Revenue. Three-quarters of that increase was due to direct taxation at £300 more than its 2014-15 level.