magazine archive

magazine archive

Ask Tom

Will I benefit from the triple-lock?

Thursday 22 Jul 2021

I reached state pension age three years ago but only part of my payment seems to benefit from the triple-lock. Is this right? And do you think the triple-lock will stay intact given the economic situation? Pau Tom Selby, AJ Bell Senior Analyst says: For the past decade or so the state pension has...

Does the lifetime allowance vary between pension types?

Thursday 15 Jul 2021

Do defined benefit scheme members really benefit from a higher lifetime allowance than defined contribution savers? If so, how can this possibly be justified? Ron Tom Selby, AJ Bell Senior Analyst says: The current lifetime allowance is £1,073,100 – a figure which will not change for the rest of...

Is it worth opening a SIPP when I’m already retired?

Thursday 08 Jul 2021

I have just read a piece about the tax advantages of a SIPP, but I have already retired and live on my existing pensions. I am 68 and have never had (or understood) a SIPP. Is it possible to gain a small advantage by opening a SIPP and is one any better than another in my situation? Arthur Tom...

Why has HMRC charged so much tax on my pension withdrawal?

Thursday 01 Jul 2021

I’ve just taken a £20,000 UFPLS from my pension. I have no other taxable income, so expected a quarter of it (£5,000) to be tax free and the rest subject to a few hundred quid of tax. Yet, HMRC has taken several thousand pounds. Is this right? Carol Tom Selby AJ Bell Senior Analyst says: UFPLS...

Have I left it too late to start saving for retirement?

Thursday 17 Jun 2021

I’m 55 and, for various reasons, have only just started saving for retirement. Have I left it too late? Lisa Tom Selby, AJ Bell Senior Analyst says: Although automatic enrolment will provide a solid retirement saving foundation for millions of younger people, for those later in their careers there...

Will pension death benefits survive Covid?

Thursday 10 Jun 2021

Do you expect the Government to continue to allow such generous pension death benefits given the financial challenges posed by coronavirus? Chris Tom Selby, AJ Bell Senior Analyst says: It’s probably worth explaining how pension death benefits work before getting into any possible future changes...

Can I recycle tax-free pension withdrawals into a SIPP?

Thursday 03 Jun 2021

I’m hoping for some plain English help on recycling tax-free lump sums into a SIPP. I’d like to take advantage of my Local Government defined benefit pension scheme at age 55 and take my 25% tax-free lump sum. I’d like to split this between my Stocks and Shares ISA and a SIPP, but I’m aware of...

I’ve got multiple pensions: how will lifetime allowance charges impact me?

Thursday 27 May 2021

I am age 60 and retired. I have a self-invested personal pension which I crystallised fully in 2017. The pension was valued at £2.2 million, and I had a lifetime allowance of £1.8 million. I paid a lifetime allowance charge of around £100,000 and took a £450,000 tax-free lump sum, which left around...

Should I use a SIPP or an ISA for retirement savings?

Thursday 20 May 2021

I have both an index linked personal pension and an employee salary sacrifice pension which was started in 2016. I am hopefully going to finish paying my mortgage in the next two or three years and want to invest an extra £100 a month for retirement. I am torn between using my Stocks and Shares ISA...

I might hit the pension lifetime allowance limit: what are my alternatives?

Thursday 06 May 2021

I’m 37 years old and have a pension worth £500,000. The decision by the Government to freeze the lifetime allowance means I’ll be hitting the limit even sooner than I previously thought. What are the alternative savings options open to me? Paul Tom Selby, AJ Bell Senior Analyst says: For those who...