magazine archive
magazine archive
Ask Tom
I’m retiring to the UK from overseas can I set up a SIPP?
Thursday 28 Apr 2022My wife and I will be retiring and moving to the UK from Canada this year (we hold dual citizenship due to our UK parents). We are in our early/mid 50s and will be receiving pension income. Once residents of UK are we able to open a SIPP, contribute and obtain tax relief? Russ Tom Selby, AJ Bell...
How much will I get from the state pension?
Thursday 14 Apr 2022I’m 62 and have worked all my life, what am I likely to receive from the state from age 66 and how does pension credit work? Sonia Tom Selby, AJ Bell Head of Retirement Policy says: The full flat-rate state pension is worth £185.15 in 2022/23 and you will qualify for it when you turn 66. In order...
Prices are going through the roof – what should I do with my pension?
Thursday 07 Apr 2022I’m 68 and had a SIPP worth around £120,000 in April last year. I withdrew £10,000 – so around 8% of the fund – which alongside my state pension took my pre-tax income to about £18,000. The remaining fund then grew by 5%, so I now have a fund worth about £115,000. Given inflation is expected to run...
Can you help me understand pension crystallisation?
Thursday 17 Mar 2022Because of current market volatility and the impact on my pension I am now considering crystallising 50% of my pot and taking my 25% tax-free lump sum instead of crystallising all my pension. Then at some later date I’ll crystallise the remainder either all at once or in smaller chunks, taking 25%...
Does invasion of Ukraine mean I should reduce risk in my pension?
Thursday 10 Mar 2022Can you explain what the crisis in Russia could mean for people’s pensions? Is now the time to take some investment risk off the table given all the uncertainty we’re seeing? I’m 43, have a workplace pension and a SIPP and I’m planning to retire when I’m 65. Owain Tom Selby, AJ Bell Head of...
I worked in the Ukraine and UK, what happens with my pension?
Thursday 03 Mar 2022I wonder if you can give me some hints on whether my state pension can be increased, as I worked in two different countries? Between 1977 and 1997 I lived and worked in Ukraine. The country has now rewritten laws and I am no longer qualified for a pension there as they require 30 years of work...
I’m 79, where should I invest?
Thursday 24 Feb 2022I am retired and have cash up to about £6,000 that I could invest. I am 79 and not sure what to be looking at, obviously interest rates are very low currently. I do not need an income at present from my investment, do you have any general principles that I should pursue? John Tom Selby, AJ Bell...
How does flexi-access drawdown work with pensions?
Thursday 17 Feb 2022I plan to access my SIPP soon, probably via flexi-access drawdown. Given the potential volatility of markets and likely valuation degradation, the option of staggering the 25% tax-free entitlement (to avoid significant capital depreciation) over a period of, say, five years seems an increasing...
What impact will inflation have on retirement savers?
Thursday 10 Feb 2022What impact will rising inflation have on people saving for retirement and those approaching retirement? There are a lot of worried people out there at the moment and it would be useful to understand what impact price rises could have. Janet Tom Selby, AJ Bell Head of Retirement Policy says: The...
What happens when I turn 75 and I’m over the pension lifetime allowance?
Thursday 03 Feb 2022I’m 70. I’ve touched very little of my pension funds. All the untouched funds are in a SIPP. I expect to be ‘tested’ against the lifetime allowance at 75. Unless there is another crash like 2008 or 2020, I will exceed the standard lifetime allowance. I’m not sure how the tax on my excess will work...