Retired households pay 31% of their income in taxes - both direct and indirect - every year, according to a new analysis.
Research from Key shows the average gross annual income for retired households is £25,051, while their post-tax income is £17,593. This equates to an annual tax bill of £7.971 - or 31% of their gross income. Indeed, the 7.1 million retired households in the UK are estimated to contribute £59.232 billion to the government from both direct and indirect taxes.
This figure is slightly lower than that paid out by the average working household, which pays 34.8% of their gross income in tax. However, it must be noted that working households have more than double the gross average annual income of retired households, with this figure standing at £50,353.
Meanwhile, the least well-off retired households pay a much bigger chunk of their income in tax. The analysis found the lowest-earning 10% generate a gross income of £8,725, and a post-tax income of £4,527. This equates to a total tax bill of 48%.