magazine archive


magazine archive

Ask Tom

I’m close to drawing my pension, should I worry about rising gilt yields?

Thursday 19 Oct 2023

I’m 63 and looking to start drawing down from my pension soon. I have read about rising gilt yields and uncertainty in the stock market in the news and I am wondering if this will likely have any impact on my pension, and whether it should mean any change to my investments? Should I be concerned?...

Can I still claim tax relief on my pension when I'm 76?

Thursday 12 Oct 2023

I am 76 years’ old and retired. My retirement income is the state pension, a small SIPP, dividends and interest. Can I pay £2,880 per annum into my pension and get £720 back from HMRC? Bill Tom Selby, AJ Bell Head of Retirement Policy, says: Although theoretically there is no limit on the amount...

What is the best type of pension scheme to be in?

Thursday 05 Oct 2023

I’m disillusioned in my desk job and considering a career change. Obviously pensions are only one consideration but I was wondering which careers give the best options? It’s pretty clear that it’s the public sector jobs that come out on top, but what are the ultimate ‘best’ schemes out there?...

What are the rules around pension contributions once you take a tax-free lump sum?

Thursday 28 Sep 2023

If you crystallise a pension and take the full tax-free lump sum, how much per year can you still contribute thereafter? With funds left in the pension, can you still buy and sell investments as you see fit so long as you only contribute no more than that allowed? Simon Tom Selby, AJ Bell Head of...

Can I use savings to buy an annuity or must the money come from a pension?

Thursday 21 Sep 2023

Can I buy an annuity with cash from savings or an ISA? I’ve heard the funds must come from a pension fund – is this true? Martin Tom Selby, AJ Bell Head of Retirement Policy, says: An annuity is a guaranteed retirement income for life paid to you by an insurance company, usually in return for your...

How does salary sacrifice work with pension contributions?

Thursday 14 Sep 2023

I recently joined a new company and they’ve offered to automatically enrol me into the workplace pension scheme using ‘salary sacrifice’. What is this? Anonymous Tom Selby, AJ Bell Head of Retirement Policy, says: Employers are required by law to contribute to your workplace pension when you do,...

Should I worry about a big Government-sanctioned pensions raid?

Thursday 07 Sep 2023

I have a defined benefit pension from a former employer and read over the weekend some stories about the Government wanting to allow firms to raid workers’ pensions. Surely this can’t be right? What happens if the government allows this and then it all goes wrong? Will we never learn? And, most...

Can a natural yield strategy sustain me in my retirement?

Thursday 24 Aug 2023

I turn 70 in 12 months’ time and I’m planning to start taking an income from my SIPP for the first time. I’ve calculated I’ll need about £12,000 a year (pre-tax), alongside my state pension, to fund my lifestyle. I have already taken my 25% tax-free cash and have a remaining pot worth just over £...

Why do ex-pats in some countries see their state pension frozen when others don’t?

Thursday 17 Aug 2023

British people who retire to the Philippines will receive annual state pension increases as per retirees living in the UK. However, retire next door in Thailand and it is frozen for life from the date you moved there. There is a completely unfathomable list of countries that fall into each category...

The lifetime allowance is being abolished but what if a future government reintroduces it?

Thursday 10 Aug 2023

I have a self-invested personal pension (SIPP) which is entirely invested in cash and which will transfer to my wife on my passing. My wife also has a SIPP invested 100% in cash. If a future government reintroduces the lifetime allowance, will any pension my wife inherits from me count towards her...

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