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How to avoid tax creep in retirement

The state pension went up 8.5% in April, but frozen thresholds mean pensioners will be paying more tax

What polymer pound notes would look like

  • Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
    1/8

    Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London

    Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
    Reuters
  • A sample Polymer five and ten pound banknote are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
    2/8

    Plastic bank notes consultation

    A sample Polymer five and ten pound banknote are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
  • Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
    3/8

    Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London

    Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
  • Samples of Polymer five pound banknotes are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
    4/8

    Plastic bank notes consultation

    Samples of Polymer five pound banknotes are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
  • A sample polymer ten GB pound banknote is seen on display at the Bank of England in London September 10, 2013. The Bank of England is moving closer to ditching paper pounds and switching to plastic banknotes instead. The central bank said on Tuesday it would ask the public its opinion before taking a decision in December on whether to adopt polymer pounds which also would be smaller than current notes. REUTERS/Chris Ratcliffe/pool (BRITAIN - Tags: BUSINESS SOCIETY)
    5/8

    A sample polymer ten GB pound banknote is seen on display at the Bank of England in London

    A sample polymer ten GB pound banknote is seen on display at the Bank of England in London September 10, 2013. The Bank of England is moving closer to ditching paper pounds and switching to plastic banknotes instead. The central bank said on Tuesday it would ask the public its opinion before taking a decision in December on whether to adopt polymer pounds which also would be smaller than current notes. REUTERS/Chris Ratcliffe/pool (BRITAIN - Tags: BUSINESS SOCIETY)
    REUTERS
  • Samples of Polymer ten pound banknotes are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
    6/8

    Plastic bank notes consultation

    Samples of Polymer ten pound banknotes are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
  • A sample polymer ten GB pound banknote is seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
    7/8

    A sample polymer ten GB pound banknote is seen on display at the Bank of England in London

    A sample polymer ten GB pound banknote is seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
  • Composite photo of samples of Polymer five and ten pound banknotes shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
    8/8

    Plastic bank notes consultation

    Composite photo of samples of Polymer five and ten pound banknotes shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
A sample Polymer five and ten pound banknote are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
Sample polymer five and ten GB pound banknotes are seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
Samples of Polymer five pound banknotes are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
A sample polymer ten GB pound banknote is seen on display at the Bank of England in London September 10, 2013. The Bank of England is moving closer to ditching paper pounds and switching to plastic banknotes instead. The central bank said on Tuesday it would ask the public its opinion before taking a decision in December on whether to adopt polymer pounds which also would be smaller than current notes. REUTERS/Chris Ratcliffe/pool (BRITAIN - Tags: BUSINESS SOCIETY)
Samples of Polymer ten pound banknotes are shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
A sample polymer ten GB pound banknote is seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool
Composite photo of samples of Polymer five and ten pound banknotes shown during the news conference at the Bank of England in London during a consultation on plans to issue plastic bank notes within the next three years.
Updated