magazine archive
magazine archive
Ask Tom
Why must I show 15 years of earnings to consolidate my pensions into one pot?
Thursday 03 Aug 2023I am trying to link up my various pension schemes into a single pension pot but my old provider has sent a questionnaire asking for my annual remuneration over the last 15 years. I have no idea how I would obtain this information or why it is important. Can you please explain? Mark Tom Selby, AJ...
What's the best way to use my pension tax-free lump sum?
Thursday 27 Jul 2023What’s the best way to use your pension tax-free lump sum? Would it be to pay off the mortgage? What about the benefits of taking it in tranches to supplement income and should it be taken as an uncrystallised lump sum each time? Or from a drawdown plan? Harriet Tom Selby, AJ Bell Head of...
Why is my pension projected to be worth less than my contributions?
Thursday 20 Jul 2023In 2016, I was automatically enrolled into a pension scheme via my workplace. I increased my contributions to 10% of earnings around four years ago. I have recently checked my projected funds at retirement based on my current contributions. It projects that my final pension pot at retirement (...
If I ‘contracted out’ of National Insurance payments can I still top up contributions?
Thursday 13 Jul 2023I am a retired teacher and as a result get a reduced state pension because I was ‘contracted-out’. My date of birth is 23 August 1953. I paid National Insurance (NI) for 46 years with no gaps but obviously paid at a reduced rate during the contracted-out period. Even though there are no gaps in my...
Why am I being offered a lot less to transfer from my defined benefit pension?
Thursday 06 Jul 2023I have a couple of old defined benefit pensions from previous employers. These are deferred as I’m not yet at retirement age. I have noticed on my recent statements the cash equivalent transfer value has dropped significantly (although the payments in retirement remain). Can you please explain how...
Are there any benefits to delaying taking the state pension?
Thursday 22 Jun 2023I am aged 65 and I will be eligible to draw my state pension later this year. However, I intend to carry on working another few years. I am aware that I can effectively defer my state pension by not opting to take it. Is there any particular advantage to deferring or would I be better off to take...
Can a retrospective lifetime allowance assessment be made once in drawdown?
Thursday 15 Jun 2023With the abolition of the lifetime allowance this year by Jeremy Hunt, will a crystallisation event take place when I decide to draw my pension early next year, post-April? If the pot is crystallised, will it be exempt from an assessment should a different party be elected and reinstate the...
Should I draw down from a pension and reinvest the money in an ISA?
Thursday 08 Jun 2023I am aged 66 and have a pension pot of £120,000 which I don’t anticipate needing for at least the next five years. Would it make sense to draw it down in a tax efficient manner (avoiding the higher rate tax band) over the next three years and reinvesting it in both mine and my wife’s Stocks and...
I’ve got eight pensions: should I consolidate them into a single pot?
Thursday 01 Jun 2023I’m now in my mid-40s and have moved around jobs fairly regularly, staying in each one for just a few years or sometimes even less. This now means I have eight different pension pots, some with as little as £1,000 in. Will this pose an administrative nightmare when I retire? And should I be looking...
Help: can I choose which pension scheme my employer pays into?
Thursday 25 May 2023Am I allowed to choose the pension scheme my employer pays contributions into? My employer has picked a scheme for me but since joining in 2016 my pension has barely grown in value. I’m 34 and my pension is currently worth around £40,000. Ahmed from Coventry Tom Selby, AJ Bell Head of Retirement...