A campaigns group has complained about the "complicated" system currently faced by the nation’s pensioners.
Speaking to This is Money, Paddy Millard at Tax Help For Older People said that some of the elderly struggle with their financial affairs, resulting in widespread tax miscalculations.
The comments follow the release of a report from the National Audit Office, which revealed that around 1.5 million UK pensioners are paying too much tax.
Of this group, the typical overpayment ran to £171 per year.
Mr Millard said: "Pensioners face a double whammy.
"Their tax affairs are even more complicated because they have multiple sources of income and no employer to answer their questions. Many end up paying too much tax for years."
Potential incomes for elderly people can be derived from state, employee and private pensions, as well as returns from cash savings and investments.
Many pensioners have also unlocked equity from their homes via an equity release plan.
Posted by Tom Papworth
