magazine archive
magazine archive
Ask Tom
What is my annual pensions allowance?
Thursday 14 Jan 2021I’m currently drawing down from a defined benefit pension scheme and I’m looking to set up a SIPP. Please can you tell me what my annual allowance will be – is it £40,000 or £4,000? Julie Tom Selby, AJ Bell Senior Analyst says: The UK pensions annual allowance for 2020/21 is £40,000. However, not...
When can I claim my state pension?
Wednesday 23 Dec 2020I am a bit confused about when I can claim my state pension in 2021. My birth date is 15 December 1955. I have read on the Government website that I have to wait an extra two months after my 66th birthday to receive my state pension – is this correct? And if so, could you explain the reason why...
Why shouldn’t I opt out of my workplace pension?
Thursday 17 Dec 2020I’m tempted to opt out of my workplace pension scheme. I’m 25 and earn £10 an hour, of which a tiny proportion goes towards my retirement. I spoke to someone who reckons this might generate an income of a few pounds a week when I’m older. I’m struggling to see the point if I’m honest, so figured I’...
What’s the difference between a Lifetime ISA and a SIPP?
Thursday 10 Dec 2020What’s the difference between a Lifetime ISA and SIPP for younger people when looking at retirement? I am maxing out my company pension up to the level they match and would like to save some extra for my retirement. I would be comfortable making the investment decisions myself and have six months’...
How will the Government’s RPI change impact me?
Thursday 03 Dec 2020I’m 68 and currently receive an annual defined benefit (DB) pension worth about £20,000 a year. At the moment it goes up in line with RPI inflation. Will this be affected by the Government’s decision to scrap RPI from 2030? Anna Tom Selby, AJ Bell Senior Analyst says: Documents published alongside...
Why must I take advice to transfer a pension?
Thursday 26 Nov 2020I have a pension fund which, after several changes of ownership, is now with a closed-book life insurer. The policy offers an attractive guaranteed annuity rate but otherwise is very poor. There is no drawdown option, the policy is not written in trust so there is no opportunity to shelter funds...
Can I open a SIPP alongside my workplace pension?
Thursday 19 Nov 2020My partner is 54 and has a small defined benefit (DB) pension from a previous employer that will provide about £3,000 a year from age 60. She also has a defined contribution (DC) scheme with her current employer where she earns about £15,500 a year. She pays about £100 a month into her existing...
Should I set up a SIPP if I have a workplace pension?
Thursday 12 Nov 2020If you already have a salary sacrifice pension from your employer, is there anything to gain by moving to a SIPP? AJ Bell podcast listener Tom Selby AJ Bell Senior Analyst says: Before answering it’s probably worth quickly explaining what salary sacrifice is and how it works in relation to a...
Is it worth making up national insurance shortfall to get a state pension?
Thursday 05 Nov 2020My wife turned 65 in August, which I believe is before the state pension age increased to 66 (in October)? She was also born in Japan but became a British citizen after living in the UK for more than 14 years. She has recently applied for a small pension from Japan. After checking her National...
How much does the lifetime allowance go up each year?
Thursday 29 Oct 2020Do we know how much will the lifetime allowance increase by next year? Am I right in thinking it goes up in line with inflation every year? Derek Tom Selby AJ Bell Senior Analyst says: The lifetime allowance is the cap on the amount you can build up in a pension over the course of your lifetime...