magazine archive
magazine archive
Ask Tom
Have I left it too late to start saving for retirement?
Thursday 17 Jun 2021I’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 2021Do 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 2021I’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 2021I 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 2021I 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 2021I’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...
How can I spot someone trying to scam me?
Thursday 29 Apr 2021How can I really know if an investment is legitimate or not? What checks can someone do to reduce the risk of being taken in by a scammer? Emma Tom Selby, AJ Bell Senior Analyst says: Financial scams are depressingly common and often target people’s hard-earned pensions. This has particularly been...
Can you help with pension crystallising?
Thursday 22 Apr 2021My pension is fully crystallised, but I only took around 12% tax free at the time I crystallised it. Can I still take a further 13% tax free? Alex Tom Selby, AJ Bell Senior Analyst says: The term ‘crystallised’ is one that comes up often in questions about pensions, and just means choosing a...
Can my employer’s pension contribution be paid to my wife?
Thursday 15 Apr 2021I have a job offer from a public sector organisation and have agreed the salary for the role. It is a permanent job and entitles me to join the civil service pension. I have for an extended period worked in the private sector and diligently set aside money in a stakeholder pension scheme. I have...
What are the benefits of deferring my state pension?
Thursday 08 Apr 2021I’ll be 66 in just under a year and so have started thinking about taking my state pension. My understanding is that I’ll get a 5.8% boost in the value of my state pension if I defer taking it by 12 months. Is this right? If so, given current interest rates are close to 0% isn’t a 5.8% annual...