magazine archive
magazine archive
Ask Tom
What are the rules around topping up national insurance contributions?
Thursday 02 Mar 2023What are the rules around topping up my National Insurance contributions record? I turn 60 in April and am unsure about my state pension entitlement. I worked abroad between 2007 and 2010 and didn’t return to full-time employment until 2012. Any information you can provide would be extremely...
With the FTSE 100 going past 8,000 should I take on riskier pension investments?
Thursday 23 Feb 2023With the FTSE 100 going past 8,000 for the first time, should I be taking more investment risk with my pension? I am 45 years old and not planning to touch my fund until my late 60s, all being well. Paulo Tom Selby, AJ Bell Head of Retirement Policy, says: It is worth explaining exactly what the...
The minimum age you can access a pension is changing – why does this matter?
Thursday 16 Feb 2023The earliest age a pension can be taken is going up to 57 in 2028. Those who are 50 now might not be aware the impact this will have on their decisions. Can you elaborate? Steve Tom Selby, AJ Bell Head of Retirement Policy, says: You are referring to the ‘normal minimum pension age’ (NMPA), which...
How do I complain about an employer shutting me out of a workplace pension scheme?
Thursday 09 Feb 2023My (previous) employer refused to let me ‘opt in’ to the workplace pension scheme early and said I had to wait three months. I believe this is wrong, you should be able to opt in as soon as you wish. Am I correct? On leaving the employer, my final pay was made up of holiday back pay and a bonus...
What can I do if I’m forced to wait for the state pension?
Thursday 02 Feb 2023I’ve just turned 60 and was expecting to receive my state pension at age 67. I’m now worried that the Government is going to change the timetable and leave me high and dry. Is there anything I can do? Colin Tom Selby, AJ Bell Head of Retirement Policy, says: While there are stories about the...
What is ‘pound-cost ravaging’ and how does it affect my pension?
Thursday 26 Jan 2023Can you please explain ‘pound-cost ravaging’? It’s a term I’ve heard several times but have yet to fully grasp how it works or whether it’s something I should be concerned about. I’m 64 and planning to start taking an income from my SIPP in 2025 (when I’ll become entitled to a state pension worth...
Is pension tax relief paid automatically or do I have to make a claim?
Thursday 19 Jan 2023I’m a higher-rate taxpayer and contribute to both my workplace ‘net pay’ pension scheme and a SIPP. Do I need to claim my tax relief or will it be paid automatically? Anonymous Tom Selby, AJ Bell Head of Retirement Policy, says: Millions of savers contribute billions of pounds each year to pensions...
What are the rules around pension recycling and how do I avoid a big penalty?
Thursday 12 Jan 2023I’d be interested in a high level run through of pension recycling rules as it seems a very grey area. For example, if we were to have more disposable income if we paid off our mortgage with my pension lump sum, would it be OK to pay more money into my self-employed partner’s pension? Or is that...
I’m moving abroad. Will I pay tax in the UK on my pension withdrawals?
Thursday 22 Dec 2022I’m 55 next year and able to access a private pension I’ve built up in the UK. My wife and I are in the process of emigrating to Thailand on a retirement visa and once resident in Thailand I’m wondering if I can take the entire amount of the private pension without paying tax on it in the UK. I’m...
How much tax relief can I claim if I’m already taking a pension?
Thursday 15 Dec 2022I left school at 16 and for eight years or so I worked for a major bank. Once I left the pension was deferred. It is now worth around £3,000 per year with a small lump sum. I realise I can take this pension at 55 (and this will move to 57 in the future). I also have a police pension which I can...