The average pensioner household paid £5,124 in tax over the past year. The average UK pensioner household pays out 27pc of its income, equivalent to £100 a week in retirement to the taxman through a combination of direct and indirect taxes which add up to an annual tax bill of more than £34 billion, new analysis from MetLife shows. The company said that on an average gross pensioner household income of £18,834, that equates to £5,124 paid out in tax, with income tax accounting for nearly £1,300 of the bill and indirect taxes including VAT totalling £2,966. Council tax is the third-largest tax burden accounting for 4.5pc of gross income.

In total, direct taxes, including income tax and council tax, account for 11.4pc of the 27pc tax burden with indirect taxes, including VAT, duty on tobacco, alcohol and petrol, vehicle excise duty and TV licences, accounting for 15.7pc. Dominic Grinstead, Managing Director of MetLife Europe Limited UK said:
“Retirement savers need to be aware of the effects of direct and indirect tax on their potential retirement income and to plan accordingly.

“Tax does not end when you stop working and it is a major factor to consider when planning for...Read more here---> Pensioners pay £100 a week in taxes - Telegraph