magazine archive

magazine archive

Ask Tom

How is ‘pension recycling’ defined?

Thursday 06 Aug 2020

I retired five years ago, fully crystallising my SIPP by taking the 25% cash lump sum and putting the remaining 75% into flexi-access drawdown. For the last five years I have been working part-time and contributing below the £4,000 per tax year limit into the company pension scheme. Now I have...

How much can I claim for pensions tax relief?

Thursday 30 Jul 2020

I previously worked for the NHS and decided a couple of years ago to leave and take my NHS pension at age 60. I then took on a role with a university. Over the last few years, I have been making SIPP contributions and used up most of my previous years’ carry forward allowances to claim tax relief...

Can I get pension tax relief from abroad?

Thursday 23 Jul 2020

I’m moving abroad to Europe but plan to continue working for a UK company and paying UK tax. Will I still be able to pay into my UK pensions and receive the same tax benefits as I do at the moment? Paul Tom Selby, AJ Bell Senior Analyst says: Because pensions benefit from generous tax treatment,...

How would moving overseas impact my pension?

Thursday 16 Jul 2020

I’m thinking of retiring in Portugal or some other tax advantageous location. I’ve heard about QROPS but I’m unsure how this would work with my SIPP and defined benefit pension. Can you please explain the mechanics? Robert Tom Selby, AJ Bell Senior Analyst says: A Qualifying Recognised Overseas...

What should I do if I’ve deferred my state pension?

Thursday 09 Jul 2020

Having deferred my state pension for five years, what are the key issues I should be considering in deciding whether to take the lump sum or an enhanced pension? David Tom Selby, AJ Bell Senior Analyst says: The ability to defer when you claim your state pension is one of the less well-known...

Which pension pot should I use first?

Thursday 02 Jul 2020

I have a defined benefit (DB) and defined contribution (DC) pension with ex-employers and will be 55 in September this year. I would like to make the most of my personal yearly income tax allowance while also leaving some of my pension funds untouched in the hope that future annuity or drawdown...

Will I trigger the MPAA if I buy an annuity?

Thursday 25 Jun 2020

Will I trigger the MPAA if I buy an annuity? And are there any other ways I can avoid it? Carl Tom Selby, AJ Bell Senior Analyst says: The money purchase annual allowance (MPAA) is triggered when you ‘flexibly access’ your pension from age 55, reducing the amount you can save in a pension each year...

How do fixed-term annuities work?

Thursday 18 Jun 2020

Can you write an article explaining how fixed-term annuities work please? I’m 60 so feel like I don’t want to lock into an annuity quite yet, but I’m nervous about staying invested via drawdown. I know you can’t give advice but can you explain the pros and cons? Aisling Tom Selby AJ Bell Senior...

How does taking a defined benefit pension before 2006 impact your lifetime allowance?

Thursday 11 Jun 2020

If you took a defined benefit pension pre-A-Day, how do you calculate the proportion of your lifetime allowance it takes up? Richard Tom Selby, AJ Bell Senior Analyst says: The lifetime allowance, which caps the amount you can save in a UK pension over your lifetime, was first introduced at ‘A-Day...

Will the triple lock stay in place?

Thursday 04 Jun 2020

Can we really expect the Government to keep its pledge to increase the state pension in line with the triple lock following Covid-19? Patrick Tom Selby, AJ Bell Senior Analyst says: While Covid-19 is clearly first-and-foremost a human tragedy, the costs of locking down vast swathes of the UK...