magazine archive
magazine archive
Ask Tom
What are the allowances around pension contributions?
Thursday 07 Jul 2022Can you clarify how the pension contribution allowances apply, especially when you’re in work and after you’ve retired? Steve Tom Selby, AJ Bell Head of Retirement Policy says: One of the key benefits of pensions is they benefit from generous income tax relief, where you get back the tax you have...
Top tips for the lifetime allowance charge
Thursday 30 Jun 2022Could you explain the lifetime allowance charge and whether it makes sense to take your excess as a lump sum or income? Arthur Tom Selby, AJ Bell Head of Retirement Policy says: The lifetime allowance restricts how much you can draw in total from all your pensions over your lifetime before...
I want to access my pension but the markets have spooked me, what should I do?
Thursday 23 Jun 2022I’m 65-years-old and thinking of accessing my pension in about 12 months’ time. However, I’ve been slightly spooked by markets recently, which knocked about £10,000 off the value of my pension. What should I be thinking about and doing before withdrawing my money? Evan Tom Selby, AJ Bell Head of...
My bills are going up, should I dip into my Lifetime ISA?
Thursday 16 Jun 2022I’m expecting my energy bills to go up by about £1,000 which means my emergency fund no longer covers six months’ fixed expenses. I’m thinking of accessing £1,000 from my Lifetime ISA early to top up my emergency fund, but in doing so I’d pay a 25% charge. Is it worth holding off for a bit just in...
I need help with my workplace pension and how to avoid a lifetime allowance hit
Thursday 09 Jun 2022I am an additional-rate (45%) taxpayer and work for a big public healthcare company. I moved out of the employer pension in 2015 and my pensions now sit outside the country in a QROPS scheme as I plan to retire elsewhere. I also have a SIPP to which I contribute £40,000 per year. I was auto-...
Should I put spare cash in my workplace pension or a SIPP?
Wednesday 01 Jun 2022I’m saving at the automatic enrolment minimum in my workplace scheme. Having just paid off my student loan, I have extra cash each month to invest. I’ve already got a decent buffer in place and own my own home. Does it make sense to top up my workplace pension (I’m currently in the default fund) or...
My pension provider is dragging its feet over a transfer – what can I do?
Thursday 26 May 2022I’m in the process of transferring my old workplace pension to a SIPP. So far it has taken two months with no obvious end in sight. Getting through to my existing provider is an absolute nightmare – several emails have gone unanswered and their phone lines leave me on hold for hours at a time...
My bills are rising. Should I pay less into my pension to free up money?
Thursday 19 May 2022Given the cost-of-living crisis is increasing bills for everyone, is it still better to prioritise pension saving if you don’t need to access the money? And once you start taking an income, does it make sense to go ISA first? Or should it be ISA and pension together to get as much tax-free as...
I've inherited £3,000 – should I pay early on my mortgage or add to pension pot
Thursday 12 May 2022I have received £3,000 from my grandad when he died and I’m trying to decide whether to pay off some of my mortgage early or boost my retirement savings. I know you can’t tell me what to do as that would be advice, but what sort of things should I be thinking about? Jason Tom Selby, AJ Bell Head of...
Is my employer playing tricks with my pension?
Thursday 05 May 2022I’m being automatically enrolled into a workplace pension scheme and was told this would be 8% of my salary. However, I’ve just done the sums and my contribution works out less than this – can this possibly be right? I also have a friend who hasn’t been auto-enrolled at all. Are we being shafted by...