According to research by insurers Met Life, the combined annual bill is £34billion.
This study highlighted the fact that a typical pensioner pays more than 25% of their income in taxes. The managing director of MetLife Europe, Dominic Grinstead, warned that retirees should plan their retirement with the cost of tax in mind.
The Met Life report, which is based on figures from the Office for National Statistics, shows that poorer pensioners pay a higher percentage of their income in tax than their wealthier peers, with those with an income of £9,445 a year, are paying £3,175 a year, a 33 levy compared with the 27 per cent average.
Homeowners aged over 55 years who are concerned about their level of income after tax and would like to know how much money the value of their property could release to increase their income, can find out by contacting
therightequityrelease.co.uk for equity release advice.