magazine archive

magazine archive

Ask Tom

Should I use pension funds to buy commercial property?’

Thursday 10 Oct 2019

I am a small business owner with a SIPP worth just under £300,000. I’m currently looking to expand into larger premises and was told I can potentially use some or all of my fund to buy commercial property. What are the risks and is it something I should consider? Devraj Tom Selby, AJ Bell Senior...

'How would an election affect my pension?'

Thursday 03 Oct 2019

I’m 58 and concerned about the impact a general election and change of government could have on my finances. Are we likely to see any big changes to the pension rules and is there anything I can do to protect myself? One option I’m considering is taking my entire SIPP (worth about £60,000) out and...

‘Should I hold off from taking the state pension for a year?’

Thursday 26 Sep 2019

I understand that you can defer taking the state pension and wondered whether or not it would be financially sensible to do so. I’m 60 now so due to receive my state pension at age 66 (assuming the Government doesn’t move the goalposts again). What exactly are the rules and how likely is it that...

‘How much can I pay into my SIPP?’

Thursday 19 Sep 2019

I understand the amount you can pay into a pension and qualify for tax relief is limited to £40,000 or your taxable income, whichever is lower. But what is deemed taxable income? I have no earned income whatsoever but I do receive £14,000 a year in dividends and interest? If I were to take out a...

‘Should I reduce risk in my pension because of Brexit?’

Thursday 12 Sep 2019

I’m 57 and currently have my SIPP invested mainly in equities. I plan to start taking an income via drawdown when I turn 65 and so was planning to take a bit less risk from my 60th birthday. However, given everything that’s going on in the UK at the moment I’m wondering if I should bring forward my...

‘I need help with annual allowance calculations’

Thursday 05 Sep 2019

When calculating the net income for the tapered annual allowance, do we have to add capital gains and dividends from an ISA given that they are not taxable? Sotirios Tom Selby, AJ Bell Senior Analyst says: The tapered annual allowance is one of three pensions annual allowances that exist in the UK...

‘How much does advice cost for pension transfers?’

Thursday 29 Aug 2019

My wife is 64 and has a final salary scheme that will provide just under £5,000 per year. The transfer value is £140,000. We have other assets so transferring the money to a SIPP rather than taking the employer pension seems sensible, especially when considering inheritance tax. As it is obligatory...

‘What tax free cash can I take from my retirement fund?’

Thursday 22 Aug 2019

At the beginning of April 2016 my SIPP had a value of £911,240. In order to release some cash I withdrew my 25% pension commencement lump sum (£227,810), thus leaving £683,430 within the SIPP. By June 2019, the SIPP had grown to £1,010,000. I will turn 75 in just over five years. My questions are:...

‘What happens with my crystallised retirement funds?’

Thursday 15 Aug 2019

I am 64 and in full-time employment. I have £28,700 in ‘crystallised’ funds from which I need to pay for some house repairs. If I invest the remaining funds into shares/funds which I will manage, and the overall amount grows by means of increases in share price or dividends, is the increase then...

‘Why are advisers being difficult with pension transfers?’

Thursday 08 Aug 2019

I am considering transferring my defined benefit (DB) pension to a SIPP. I am a keen private investor, with a sizeable portfolio, which I’ve managed since 1994. I am being stymied at every turn. If an IFA provides a transfer suitability report to say that it is right for me to transfer then they...