magazine archive
magazine archive
Ask Tom
What's the downside of moving from capped to flexible drawdown?
Thursday 29 Sep 2022I was planning to flip from capped drawdown to flexible drawdown to boost my income. However, my income review is due in October and the GAD rate has increased to 3.25%. I still think I’d like the extra flexibility, but are there any downsides? Lucy Tom Selby, AJ Bell Head of Retirement Policy,...
I want to transfer my pension. Why do I have to pay for financial advice?
Thursday 22 Sep 2022I have an old pension policy with a ‘guaranteed annuity rate’ attached, which I’m told is quite valuable. I want to transfer it to a new provider so I can access the money flexibly, but I’ve been told I can’t unless I speak to – and pay for – a financial adviser. How can this possibly be the case?...
How big a pot of money do I need to retire on?
Thursday 15 Sep 2022How much money will I need to retire? I’m currently in my early 50s and planning to keep on working full time at least until state pension age. However, I have the option of working part time beyond this date to supplement my income. Bryce Tom Selby, AJ Bell Head of Retirement Policy says: How much...
I’m short of cash and have seen an online offer to take money out of my pension, what should I do?
Thursday 08 Sep 2022I’m really struggling for cash at the moment and found a website offering to unlock half my pension. I’m 35 years old and have around £50,000 in my workplace pension. If I could get half of that I’d be able to pay off my credit card debts and have a bit extra to one side for a rainy day. Are there...
Cost of living crisis: How will inflation affect different types of pensions?
Thursday 25 Aug 2022I’m 70 and have been following the ‘4% rule’ since I started taking an income in drawdown on my 65th birthday. However, if I keep to that plan, I’ll need to increase withdrawals by 10%+ in September this year. Is that sensible or will I risk running out of money in retirement? Paul Tom Selby, AJ...
By following the 4% rule, do I risk running out of money?
Thursday 18 Aug 2022I’m 70 and have been following the ‘4% rule’ since I started taking an income in drawdown on my 65th birthday. However, if I keep to that plan, I’ll need to increase withdrawals by 10%+ in September this year. Is that sensible or will I risk running out of money in retirement? Paul Tom Selby, AJ...
Is now a bad time to take my pension tax-free cash?
Thursday 11 Aug 2022I’m 62 and not planning to take a retirement income until state pension age. I’m worried about the rise in energy prices and want to bolster my rainy-day fund. However, my fund has fallen by around 10% this year, so am I selling at the worst possible time? Harriett Tom Selby, AJ Bell Head of...
Will the new Consumer Duty make any real difference?
Thursday 04 Aug 2022I’ve been reading a lot about a new Consumer Duty recently. What exactly is it and will it make any difference to anything at all? Tom Tom Selby, AJ Bell Head of Retirement Policy says: The Consumer Duty will set a new regulatory standard for the UK financial services sector, requiring firms to ‘...
Does the state pension count as earnings when considering tax relief?
Thursday 28 Jul 2022If I receive the state pension and have no other earnings, is it possible to pay money into a private pension and receive tax relief? Does the state pension count as earnings for tax relief? William Tom Selby, AJ Bell Head of Retirement Policy says: Provided you are aged below 75 and a UK resident...
Help, I’ve nearly breached my lifetime pensions allowance and my 75th birthday is near
Thursday 21 Jul 2022I turned 70 last month and haven’t yet started taking an income from my pension. My fund enjoyed 20% growth last year and as a result I’m perilously close to the lifetime allowance. I’m thinking about withdrawing some money from my SIPP and putting it in an ISA to keep below the lifetime allowance...