magazine archive
magazine archive
Ask Tom
Why won’t I qualify for the full state pension?
Thursday 01 Apr 2021I’m 66 on 19 June 2021 and therefore will qualify to draw my state pension. Based on my National Insurance record up to 5 April 2020, my state pension is forecast to be £146.49 per week, while if I contribute until 5 April 2021 it will be £151.50 per week. I’m told I have 47 years’ NI contributions...
What are the tax issues when I transfer a pension?
Thursday 25 Mar 2021I have had a crystallised pension fund since 2014 and to date I’ve not had to take any taxable income from the fund. Can I transfer the fund without any tax implications? Peter Tom Selby, AJ Bell Senior Analyst says: Regardless of whether your fund is ‘crystallised’ – meaning you have picked a...
Is my pension withdrawal plan sensible?
Thursday 11 Mar 2021I’m 62 years old and have a SIPP worth roughly £200,000. I’ve already taken my 25% tax-free cash and have a relatively small defined benefit entitlement (paying about £4,000 a year). I’ve paid off my mortgage and think I’ll need an income of around £15,000 a year from my SIPP to cover bills, a...
How does the tapered annual allowance on pensions work
Thursday 04 Mar 2021One thing I find very difficult to understand with UK pensions is the tapered annual allowance. Can you help explain this complex rule? Podcast listener Tom Selby, AJ Bell Senior Analyst says: amount they can contribute to a pension each year without incurring tax charges is £40,000 – the ‘annual...
Which should I choose: ISA, Lifetime ISA or SIPP?
Thursday 25 Feb 2021I currently have a few investments across ISAs, Lifetime ISAs and SIPPs. I am willing to put money away for a reasonable timeframe, around 25 years, to aid me in retirement. Would my money bit better off in an ISA, Lifetime ISA or SIPP? Robert (Money & Markets podcast listener) Tom Selby, AJ...
How will changes to the pension age impact me?
Thursday 18 Feb 2021I am 45 years old and currently have a SIPP worth around £130,000. Will I be able to access this at age 55 or will I have to wait until I’m 57? Andy Tom Selby , AJ Bell Senior Analyst says: Under current UK retirement rules, usually people can access their pension from age 55. When the pension...
Is there early pension access for the terminally ill?
Thursday 11 Feb 2021I’ve just been diagnosed with a terminal illness and may not be around this time next year. I am 59 and have a workplace pension. Can I access these funds or my state pension early? Anonymous Tom Selby , AJ Bell Senior Analyst says: There are specific HMRC rules which, in certain circumstances,...
Can I move money from a workplace pension to a SIPP?
Thursday 04 Feb 2021Can I transfer out of a workplace pension to my SIPP at any time, or say at six month or annual timescales? I want to take control of my own investments. What are the laws / rules that cover this? Matt (podcast listener) Tom Selby , AJ Bell Senior Analyst says: If you are employed in the UK, you...
How can I avoid exceeding the lifetime pension limit?
Thursday 28 Jan 2021I’m in my late 30s and have £600,000 in my defined contribution pension pot provided by my employer. I have done this by maximising the annual contribution limit (currently £40,000 subject to tapering) over the last six years. Given that the lifetime allowance is currently £1,073,100 I’m thinking...
Options for a SIPP that doesn’t need to pay bills
Thursday 21 Jan 2021I retired two years ago from the NHS at age 60. My current annual NHS pension is about £36,000 after tax. This is indexed and enough to cover a comfortable lifestyle for me. I have a SIPP account from which I took 25% tax-free cash three years ago and is currently worth £90,000 invested into five...