magazine archive

magazine archive

Ask Tom

What should I do if I’ve deferred my state pension?

Thursday 09 Jul 2020

Having deferred my state pension for five years, what are the key issues I should be considering in deciding whether to take the lump sum or an enhanced pension? David Tom Selby, AJ Bell Senior Analyst says: The ability to defer when you claim your state pension is one of the less well-known...

Which pension pot should I use first?

Thursday 02 Jul 2020

I have a defined benefit (DB) and defined contribution (DC) pension with ex-employers and will be 55 in September this year. I would like to make the most of my personal yearly income tax allowance while also leaving some of my pension funds untouched in the hope that future annuity or drawdown...

Will I trigger the MPAA if I buy an annuity?

Thursday 25 Jun 2020

Will I trigger the MPAA if I buy an annuity? And are there any other ways I can avoid it? Carl Tom Selby, AJ Bell Senior Analyst says: The money purchase annual allowance (MPAA) is triggered when you ‘flexibly access’ your pension from age 55, reducing the amount you can save in a pension each year...

How do fixed-term annuities work?

Thursday 18 Jun 2020

Can you write an article explaining how fixed-term annuities work please? I’m 60 so feel like I don’t want to lock into an annuity quite yet, but I’m nervous about staying invested via drawdown. I know you can’t give advice but can you explain the pros and cons? Aisling Tom Selby AJ Bell Senior...

How does taking a defined benefit pension before 2006 impact your lifetime allowance?

Thursday 11 Jun 2020

If you took a defined benefit pension pre-A-Day, how do you calculate the proportion of your lifetime allowance it takes up? Richard Tom Selby, AJ Bell Senior Analyst says: The lifetime allowance, which caps the amount you can save in a UK pension over your lifetime, was first introduced at ‘A-Day...

Will the triple lock stay in place?

Thursday 04 Jun 2020

Can we really expect the Government to keep its pledge to increase the state pension in line with the triple lock following Covid-19? Patrick Tom Selby, AJ Bell Senior Analyst says: While Covid-19 is clearly first-and-foremost a human tragedy, the costs of locking down vast swathes of the UK...

How does the pensions test at age 75 work?

Thursday 28 May 2020

Can you please explain how the lifetime allowance test at age 75 works? My fund is in drawdown and has been hit hard by the pandemic, so I’m tempted to withdraw some or all of it now. If I do this will the money I take out be tested? Chris Tom Selby ,AJ Bell Senior Analyst says: The amount you can...

What can I put into a pension now I’m retired?

Thursday 21 May 2020

I finished my last employment in November 2018 and that was when I made my last pension contribution. I opened a SIPP just before this and put in a small amount of cash. I am effectively retired at 59 but living off cash savings and have recently received an inheritance and a matured endowment. Can...

I’m told I can access my pension early, is this true?

Thursday 14 May 2020

I received a phone call from someone saying I could access 50% of my pension today through a loan scheme. I’m 50 years old and while my job is secure for now, it’s entirely possible that will change. I have no other savings, so it would be useful if I could access my pension in this way. Stephen...

Are the rules on holding residential property in a SIPP going to change?

Thursday 07 May 2020

Are there any signs that the ban on holding residential property in a SIPP may be relaxed? There will be an awful lot of vacant/non income-producing properties currently held in SIPPs within the bar/restaurant/hospitality/retail sector as a result of the current crisis which would be very suitable...