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Government changes rule for many people on pensions access at 55
Thursday 11 Nov 2021Last week I answered a question about Government plans to change the minimum age you can access your retirement pot. In typical fashion, on the day the article was published the Treasury closed a loophole that would have given some individuals access to their retirement money from age 55 by...
Can I protect my right to claim a pension at 55?
Thursday 04 Nov 2021I will be 55 in September 2028 and it’s possible I will be adversely affected by the increase in the normal minimum pension age to age 57. Is it possible to protect my rights to access my pension at age 55 before the change comes into effect? I hold a SIPP with a large investment platform. Carl Tom...
Should I keep overpaying on my mortgage?
Thursday 28 Oct 2021I’m 50 years old and would like to retire as close to 55 as possible. I have a joint mortgage for which we make overpayments of £250 per month. The mortgage is a five-year fixed rate at 1.49% which runs until April 2026. Should we continue to make the overpayments and pay down the mortgage quicker...
Just how does the lifetime allowance work?
Thursday 21 Oct 2021Mr A (aged 50) starts a SIPP with £10,000 and does not make any further annual contributions over the next 10 years into the SIPP or any other pension, and the value of the that £10,000 grows to, say, £1 million, how would the £1 million pension fund be assessed against the lifetime allowance?...
Should my wife have all her income paid into a SIPP?
Thursday 14 Oct 2021My wife is nearly 64 and will retire in the next two years. Together with a business partner she manages two nursery schools. This is a limited company (50% each) and for the last couple of years she has paid herself a minimal amount in salary, with the rest taken in the form of dividends totalling...
Why is it costing me to leave a with-profits pension?
Thursday 07 Oct 2021I was sold a pension policy by one of the big insurers in the late 1990s which was half unit-linked, half with-profits. Since 1999 they have applied a so-called ‘MVR’ to the with-profits portion which means it will cost me 10-15% of the fund to move to a SIPP. How can this possibly be fair? Graham...
Would I be better off without salary sacrifice?
Thursday 30 Sep 2021I have been contributing to two pensions in the last few years – my SIPP and my workplace pension. My workplace contributions are made through salary sacrifice and I contribute 40% of my earnings together with an 11% employer contribution. This means the earnings on my P60 for the last two years...
Help, I don’t understand the flexi-access options for pensions
Thursday 23 Sep 2021I want to take annual lump sums from my pension pot in retirement, each made up of a 25% tax-free component and the balance in taxable income subject to my personal tax allowance. I don’t want to take all of my 25% tax free at the outset. I can’t see the difference between flexi-access drawdown/...
What are my social care options?
Thursday 16 Sep 2021After reading about social care reforms, I’ve realised I have very little knowledge of the products and options available. Can you provide an overview please? Ryan Tom Selby, AJ Bell Head of Retirement Policy says: There aren’t a huge number of specific solutions available for those who self-fund...
Can I cash out all my pensions in one go from age 55?
Thursday 09 Sep 2021Can I cash out all my pensions in one go from age 55? I’m thinking of doing this as I don’t really trust pensions and would rather have control of my own money. Christopher Tom Selby AJ Bell Head of Retirement Policy says: This depends on the type of pension you have. The state pension pays an...