State pensioners who hit age 85 warned they face demand letter from HMRC State pensioners are set to be at risk from a HMRC tax demand letter, with those aged 85 to 85 most likely to exceed the Personal Tax-Free Allowance. State pensioners are set to be at risk from a HMRC tax demand letter, with those aged 85 to 85 most likely to exceed the Personal Tax-Free Allowance. State pensioners who hit age 85 have been warned they face a HMRC demand. State pensioners are set to be at risk from a HMRC tax demand letter, with those aged 85 to 85 most likely to exceed the Personal Tax-Free Allowance. 46 per cent of those aged between 85 and 89 have state pensions that breach the £12,570 tax-free threshold, along with 45pc of retirees aged 90 and over. 22 per cent of retirees aged under 85 have been hit with a “retirement tax” on their state pension income. ‌ Income tax thresholds have been frozen since 2022 under the Tories and are due to remain so until 2028. At the same time, the state pension “triple lock” has pushed up retirees’ weekly payments. ‌ READ MORE 39 counties in England at risk of 'power cuts' in 29C UK heatwave Steve Webb, a former pensions minister, now a partner at pension consultants LCP, said: “It is often forgotten that the old state pension was made up of two parts – a largely flat-rate basic pension and an earnings-related pension on top, which could add significantly to the amount you received. “People whose pension comes mainly from the state rather than a workplace pension can easily find their total state pension takes them into the income tax bracket. Those on the new system are mostly under the tax threshold, but this will change dramatically at some point in the next two years when the standard new pension goes over the tax threshold. Article continues below “At this point most new state pensioners will be taxpayers, regardless of any other income.” Caroline Abrahams, director of charity Age UK, said it was “intuitively unfair” that the very oldest in society should be taxed most on their state pension. She added: “People in this age group are much more likely to be in ill-health and also to find their savings have dwindled over the years, compared to others who have only recently retired.” “The disproportionately adverse impact on the oldest people in our society is another reason why the Government should now increase the personal allowance, rather than keeping it frozen year on year.” ‌ Baroness Altmann, another former pensions minister, said: “The oldest pensioners now in their 80s or 90s will be the ones likely to have most Serps, which can give a large extra payment on top of the old basic state pension. “While it is still the case that nearly half of the oldest citizens do not yet pay tax on their state pension income, if their state pension increases while the tax threshold stays frozen then more may be dragged into the tax net. “The most elderly may be unable to cope with tax returns leaving them vulnerable to fines or penalties for failing to pay small amounts of tax.” Article continues below An HM Treasury spokesman said: “We are committed to help our pensioners live their lives with dignity and respect, which is why we have frozen fuel duty and increased the state pension to leave pensioner couples up to £88 better off a month. Our commitment to the triple lock means millions will see their pension rise by up to £1,900 this parliament.”