The Government's proposed income tax waiver for pensioners may exclude many who deferred their state pension. The waiver aims to exempt those whose only income is the full new or basic state pension, but this will only benefit 1 in 18 pensioners, according to research by LCP. Partner at the firm and former pensions minister Steve Webb commented: "The uncertainty about the proposed tax waiver makes it difficult for people deciding now whether or not to defer taking their state pension." Many pensioners fear they will face higher taxes due to increments from deferral, potentially losing hundreds annually.
