Government considering taxing state pension BEFORE it’s paid out in major reform
AI Summary
The government is exploring a significant shift in pension policy by considering to tax the state pension before it reaches recipients. This change would see the Department for Work and Pensions deduct income tax from the pension payments upfront, a departure from the current system where pensioners receive their full amount before any tax is deducted. This move could have substantial implications for retirees' take-home pay and financial planning, sparking debate over the fairness and practicality of such a reform.
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