magazine archive

magazine archive

Ask Tom

‘Should I reduce risk in my pension because of Brexit?’

Thursday 12 Sep 2019

I’m 57 and currently have my SIPP invested mainly in equities. I plan to start taking an income via drawdown when I turn 65 and so was planning to take a bit less risk from my 60th birthday. However, given everything that’s going on in the UK at the moment I’m wondering if I should bring forward my...

‘I need help with annual allowance calculations’

Thursday 05 Sep 2019

When calculating the net income for the tapered annual allowance, do we have to add capital gains and dividends from an ISA given that they are not taxable? Sotirios Tom Selby, AJ Bell Senior Analyst says: The tapered annual allowance is one of three pensions annual allowances that exist in the UK...

‘How much does advice cost for pension transfers?’

Thursday 29 Aug 2019

My wife is 64 and has a final salary scheme that will provide just under £5,000 per year. The transfer value is £140,000. We have other assets so transferring the money to a SIPP rather than taking the employer pension seems sensible, especially when considering inheritance tax. As it is obligatory...

‘What tax free cash can I take from my retirement fund?’

Thursday 22 Aug 2019

At the beginning of April 2016 my SIPP had a value of £911,240. In order to release some cash I withdrew my 25% pension commencement lump sum (£227,810), thus leaving £683,430 within the SIPP. By June 2019, the SIPP had grown to £1,010,000. I will turn 75 in just over five years. My questions are:...

‘What happens with my crystallised retirement funds?’

Thursday 15 Aug 2019

I am 64 and in full-time employment. I have £28,700 in ‘crystallised’ funds from which I need to pay for some house repairs. If I invest the remaining funds into shares/funds which I will manage, and the overall amount grows by means of increases in share price or dividends, is the increase then...

‘Why are advisers being difficult with pension transfers?’

Thursday 08 Aug 2019

I am considering transferring my defined benefit (DB) pension to a SIPP. I am a keen private investor, with a sizeable portfolio, which I’ve managed since 1994. I am being stymied at every turn. If an IFA provides a transfer suitability report to say that it is right for me to transfer then they...

‘Is it illegal to recycle pension money to get extra tax relief?’

Thursday 01 Aug 2019

I’ve heard that it’s possible to fall foul of HMRC’s pension recycling rules; can you explain the pitfalls and how to avoid them please? Dean HMRC has rules in place to stop pension savers getting ‘double bubble’ on their pension tax relief. As you say, this concept is referred to by the taxman as...

‘How can I access pension money and still save into the pot?’

Thursday 25 Jul 2019

My wife is 62 and has a small SIPP of around £32,500 in total and no other pension (of her own). We have other savings in ISAs we want to keep there and a large SIPP of mine we cannot access until I am 55. We would like to access some of her pension (the tax-free element and around £7,500 to take...

When will I receive the state pension?

Thursday 11 Jul 2019

I celebrated my 61st birthday in June and I’m starting to think about when I’ll retire. I’ve got my private pensions sorted but I’m struggling to figure out when I’ll get my state pension. Is there a chance the date will change? The thought of a moving target is pretty unnerving. Any help you can...

'How can I arrange my pensions to fund a country living dream?'

Thursday 04 Jul 2019

I’m 53 and semi-retired, currently working part-time shifts as a paramedic. I’d like to retire to the country in 10 years’ time with my wife but need to work out what to do with my pensions first. I have £150,000 in a policy which I took out in 1991 and which matures in 2021, when I’m 55. I also...