State Pension and Starting Rate for Savings

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82180500#Comment_82180500

Your figures are out of date.

The standard new State Pension is currently £12,547/year.

It is almost certainly going to be £13,036 next year (2027/28).

The taxable amount for those getting the standard new State Pension is slightly less but will still no doubt be sufficient to generate a tax liability for 2027/28.

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/82179579#Comment_82179579

The husband has in that year most of his starter savings rate £5000 band left - c£4600 as well as the £1000 that applies to all basic rate taxpayers.

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/82180508#Comment_82180508

Thanks got my years out as well - so edited post to just quote last years rate - as pretty sure OP said last years 25.26 tax calcs

GrubbyGirl_2

https://forums.moneysavingexpert.com/discussion/comment/82179706#Comment_82179706

Because the government indicated that from 2027/28 they would not tax anyone who's only source of income was the state pension so even a small amount of interest would trigger a tax bill, hence putting it in an ISA. Of course they may use different criteria e.g. no more than the new state pension but at the moment they did say "only income being the state pension"

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82180624#Comment_82180624

It's arguably implicit, but they didn't actually specify that the test relates only to taxable income, so IMHO it's plausible that income from ISAs could be included in the 2027/28 'means test' - to the best of my knowledge this hasn't been done before in the context of income tax (although ISA savings aren't sheltered from benefits means-testing) and would be complicated to achieve, but there's first time for everything and the detail hasn't been finalised…

Re "they may use different criteria e.g. no more than the new state pension but at the moment they did say "only income being the state pension"", the wording was quoted on the previous page and included "sole income is the basic or new State Pension without any increments".