magazine archive
magazine archive
Ask Tom
Should I claim for pension credit and what might I receive?
Thursday 11 May 2023Is it worth putting in a claim for pension credit? What are the benefits and how do I go about checking if I qualify? Malcolm Tom Selby, AJ Bell Head of Retirement Policy, says: Pension credit is a key benefit provided by the state which often goes unclaimed by lower income retirees. The government...
Can I use my tax-free cash lump sum to boost my pension?
Thursday 04 May 2023I am pondering taking 25% tax free cash from my defined contribution pension scheme next month when I turn 55. I will not enter drawdown, as I’m still working full time and don’t need the income. Up until the government changed the rules in the last Budget, I was facing a lifetime allowance issue,...
As a sole director of a limited company, how much can I make in employer contributions?
Thursday 27 Apr 2023I am planning to take the maximum tax-free lump sum from my pension pot and go into drawdown. I have a sum of money invested in my limited company and plan that the company will stay trading albeit on a limited basis for the foreseeable future. I understand that the amount that I can personally pay...
What do I need to think about before accessing tax-free cash from my pension?
Thursday 20 Apr 2023I’ve just turned 57 and I’m considering accessing my pension tax-free cash for the first time. What should I be thinking about? Anonymous Tom Selby, AJ Bell Head of Retirement Policy, says: The ability to access up to 25% of your retirement pot tax-free is a key benefit of pension saving and,...
Can you crystallise a pension without taking out any cash?
Thursday 13 Apr 2023You recently mentioned holding off crystallising a pension until after 5 April if it would otherwise use up your lifetime allowance. Can you crystallise a pension by taking a small portion under drawdown and taking out no cash? If so, would this mean the pension is not subject to any future...
What do changes in the Budget mean for ‘carry forward’ pension contributions?
Thursday 06 Apr 2023What do the Budget changes mean for pensions ‘carry forward’? Will I be able to contribute more to my pension using carry forward in 2023/24? I earn just over £100,000 a year and contributed approximately £20,000 a year to my pension in each of the last three tax years. Anonymous Tom Selby, AJ Bell...
Do limits on tax-free cash mean scrapping the lifetime allowance is meaningless?
Thursday 30 Mar 2023I’ve heard a lot of people suggesting the lifetime allowance being scrapped is a big giveaway to the wealthy, but why would anyone pay in above £1,073,100 if they can’t build up any more tax-free cash? What am I missing? Meredith, Somerset Tom Selby, AJ Bell Head of Retirement Policy, says: I...
What exactly do the big Budget changes mean for pension investments?
Thursday 23 Mar 2023I appreciate it is early days but can you explain the key pensions measures from the Budget and how they will affect people? And what happens if Labour comes in and reverses it all? Stephen Tom Selby, AJ Bell Head of Retirement Policy, says: Jeremy Hunt’s first Budget as chancellor delivered a...
How do I top up National Insurance contributions now the deadline has been extended?
Thursday 16 Mar 2023I understand that the deadline for topping up your state pension National Insurance has been extended from 5 April to 31 July – is this correct? As a mother who raised children and only worked for a limited number of years, I have many ‘missed’ years. I have just turned 60 and understand that I can...
What are the rules around adding cash to a SIPP in capped drawdown?
Thursday 09 Mar 2023Part of my SIPP is in capped drawdown. I have accessed the pension by withdrawing my 25% tax-free allowance and have also taken some taxable income over the years. I am now considering adding some further cash to my SIPP so what do I need to consider before I do this? Would a new contribution allow...