However, Rachael Griffin, at wealth adviser Quilter, said the policies had “chipped away” at retirees’ incomes, forcing many to “reassess how they structured their finances”.
She added: “Many people carefully build portfolios designed to generate a sustainable income alongside their pension.
“At a time when retirees are already concerned about maintaining their standard of living and making their money last, these changes mean more people will need to think more carefully about how they draw income.”
Sarah Coles, of AJ Bell, said: “The double whammy of falling tax-free allowances and rising dividend tax rates means pensioners are being walloped by dividend tax.
“The fact that all this is happening at a time of rising dividends means more of them are facing a tax bill.
“Pensioners often rely on these dividends for income in retirement, so if they’re holding their investments outside an Isa, the taxman is increasingly likely to be helping himself to a share of the cash they were relying on to pay the bills.”
A Treasury spokesman said: “The vast majority of pensioners do not pay dividend tax. People can receive up to £500 in dividend income each year tax-free through the dividend allowance, while ISAs provide a further tax-efficient way to save and invest.
“We remain committed to supporting pensioners and giving them the dignity and security they deserve in retirement through the triple lock.”
