magazine archive
magazine archive
Ask Tom
How can I protect myself against a wealth tax?
Thursday 02 Sep 2021How can I protect my money if the Government introduces a wealth tax? I’ve worked hard and saved all my life – how can it be fair for politicians to come after people who have done the right thing? Tom Tom Selby, AJ Bell Senior Analyst says: It’s important to kick off with a bit of context. While...
Can you help me with the ‘dos’ and ‘don’ts’ of drawdown?
Thursday 26 Aug 2021I’m 65, active and enjoy my flexibility. Because of that I’m fairly sure I don’t want to buy an annuity. Could you offer some basic ‘dos’ and ‘don’ts’ for anyone wanting to stay invested in drawdown? Moira Tom Selby, AJ Bell Senior Analyst says: While buying an annuity is a one-and-done decision –...
How is the lifetime allowance tested at 75?
Thursday 19 Aug 2021I’d appreciate it if you could explain how the assessment of pension funds against the lifetime allowance/fixed protection amount works at age 75. In particular are pension commencement lump sums added back to the scheme values? Stephen Tom Selby , AJ Bell Senior Analyst says: The lifetime...
Could the state pension age hike be reversed?
Thursday 12 Aug 2021I’m one of the three million women affected by unfair increases in the state pension age and have had to delay retirement by four years because I simply couldn’t afford to stop working. Given the Government has now been found guilty of maladministration, surely the women affected will now need to...
Which is better: a Junior ISA or a Junior SIPP?
Thursday 05 Aug 2021My partner and I have just had our first child and we’ve been showered with all sorts of wonderful baby gifts. However, we’re also keen to give our daughter a leg-up by saving into a Junior SIPP or a Junior ISA. Which one should we go for? Simone (podcast listener) Tom Selby, AJ Bell Senior Analyst...
Could natural yield be a retirement income solution?
Thursday 29 Jul 2021I’ve been inspired by the book ‘Your Retirement Salary’ by Richard Dyson and Richard Evans, and the method of accessing a pension via just its natural yield. WHowever, I’m not clear as to how this would actually work using either drawdown or UFPLS. Could you shed some light please? Steve Tom Selby...
Will I benefit from the triple-lock?
Thursday 22 Jul 2021I 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 2021Do 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 2021I 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 2021I’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...