Ian1

I retired in May 2023. I have not drawn any income from pension or work since and I don't owe any tax. I recently withdrew a small nominal amount from my pension in order to allow the pension company to get my tax code. I had expected my tax code. to change from 1237L to 1257L, instead it dropped to 1137L. It seems to be because the untaxed interest on savings assumption has gone up. What I don't understand is why. As I understand it taking into account my personal savings allowance, plus the starting rate for savings, means I will not owe ant tax on savings in 2024/2025. Why has this impacted my tax code. Any advise appreciated.