magazine archive

magazine archive

Ask Tom

My bills are rising. Should I pay less into my pension to free up money?

Thursday 19 May 2022

Given the cost-of-living crisis is increasing bills for everyone, is it still better to prioritise pension saving if you don’t need to access the money? And once you start taking an income, does it make sense to go ISA first? Or should it be ISA and pension together to get as much tax-free as...

I've inherited £3,000 – should I pay early on my mortgage or add to pension pot

Thursday 12 May 2022

I have received £3,000 from my grandad when he died and I’m trying to decide whether to pay off some of my mortgage early or boost my retirement savings. I know you can’t tell me what to do as that would be advice, but what sort of things should I be thinking about? Jason Tom Selby, AJ Bell Head of...

Is my employer playing tricks with my pension?

Thursday 05 May 2022

I’m being automatically enrolled into a workplace pension scheme and was told this would be 8% of my salary. However, I’ve just done the sums and my contribution works out less than this – can this possibly be right? I also have a friend who hasn’t been auto-enrolled at all. Are we being shafted by...

I’m retiring to the UK from overseas can I set up a SIPP?

Thursday 28 Apr 2022

My wife and I will be retiring and moving to the UK from Canada this year (we hold dual citizenship due to our UK parents). We are in our early/mid 50s and will be receiving pension income. Once residents of UK are we able to open a SIPP, contribute and obtain tax relief? Russ Tom Selby, AJ Bell...

How much will I get from the state pension?

Thursday 14 Apr 2022

I’m 62 and have worked all my life, what am I likely to receive from the state from age 66 and how does pension credit work? Sonia Tom Selby, AJ Bell Head of Retirement Policy says: The full flat-rate state pension is worth £185.15 in 2022/23 and you will qualify for it when you turn 66. In order...

Prices are going through the roof – what should I do with my pension?

Thursday 07 Apr 2022

I’m 68 and had a SIPP worth around £120,000 in April last year. I withdrew £10,000 – so around 8% of the fund – which alongside my state pension took my pre-tax income to about £18,000. The remaining fund then grew by 5%, so I now have a fund worth about £115,000. Given inflation is expected to run...

Can you help me understand pension crystallisation?

Thursday 17 Mar 2022

Because of current market volatility and the impact on my pension I am now considering crystallising 50% of my pot and taking my 25% tax-free lump sum instead of crystallising all my pension. Then at some later date I’ll crystallise the remainder either all at once or in smaller chunks, taking 25%...

Does invasion of Ukraine mean I should reduce risk in my pension?

Thursday 10 Mar 2022

Can you explain what the crisis in Russia could mean for people’s pensions? Is now the time to take some investment risk off the table given all the uncertainty we’re seeing? I’m 43, have a workplace pension and a SIPP and I’m planning to retire when I’m 65. Owain Tom Selby, AJ Bell Head of...

I worked in the Ukraine and UK, what happens with my pension?

Thursday 03 Mar 2022

I wonder if you can give me some hints on whether my state pension can be increased, as I worked in two different countries? Between 1977 and 1997 I lived and worked in Ukraine. The country has now rewritten laws and I am no longer qualified for a pension there as they require 30 years of work...

I’m 79, where should I invest?

Thursday 24 Feb 2022

I am retired and have cash up to about £6,000 that I could invest. I am 79 and not sure what to be looking at, obviously interest rates are very low currently. I do not need an income at present from my investment, do you have any general principles that I should pursue? John Tom Selby, AJ Bell...