magazine archive


magazine archive

Ask Rachel

Can I take tax-free cash from my pension more than once?

Thursday 30 Jan 2025

I am 64 and retired from my full-time job about four years ago. At that time, I took my tax-free cash from my SIPP. I haven’t yet taken any other money from my SIPP. Instead, I am working part-time as a consultant which gives me enough money for our needs. Over the last four years my pension has...

Can I bequest my SIPP assets to charity tax free?

Thursday 23 Jan 2025

I have worked in the public sector for most of my life and since I retired, I am receiving a pension. I also have a small SIPP which I have not yet touched. My husband has a good pension of his own plus his state pension. When I die he will receive my share of our joint assets and will have enough...

How will I be taxed if I use my SIPP pot to buy an annuity?

Thursday 16 Jan 2025

I am 67 and after combining two SIPPS I now have a single SIPP worth approximately £500,000. I drew income flexibly in the past from one of the SIPPs. My understanding is that I can take 25% tax free from my SIPP at any point and then the remaining pot is taxed on withdrawal at marginal rates. I...

What is ‘carry forward’ and how can it help with my pension planning?

Thursday 09 Jan 2025

I’ve read that anyone who exceeds the maximum annual allowance of £60,000 for pension contributions in 2024/25 is liable for tax on the contribution above their allowance. However, I gather you can ‘carry forward’ up to three preceding years that you didn’t fully use your maximum annual allowance...

Should I look at alternatives to a SIPP in wake of inheritance tax changes?

Thursday 19 Dec 2024

I am 67 and currently have a SIPP worth approximately £500,000. Because the favourable IHT regime is now ending I am now considering whether to reduce the amount in my SIPP and look at alternatives. My understanding is that I can take 25% tax free from my SIPP at any point and then the remaining...

How are my different pensions affected by inheritance tax changes?

Thursday 05 Dec 2024

I was really disappointed to learn pensions will fall into inheritance tax. I have several different pensions schemes. One is a defined benefit scheme with my employer, and I also have an additional voluntary contribution section. But I also have a SIPP. Could you tell me if these pensions are...

When does the money purchase annual allowance apply?

Thursday 28 Nov 2024

In a previous article you say that someone taking income from a defined benefit pension could still contribute to their SIPP up to the level of their earnings. Does this mean that the money purchase annual allowance of £10,000 applies only if you take taxable income from a defined contribution...

How is a drawdown pot accounted for when paying care costs?

Thursday 21 Nov 2024

Could you please explain how someone’s drawdown pot is taken into account when working out how much you have to pay towards care costs. For example, for the purposes of working this out, is the pot of money converted into an annuity income based on the person’s age and capital pot value. And if so...

What should I do after the inheritance tax advantage on pensions was wiped out by the Budget?

Thursday 14 Nov 2024

Now we have had the Budget, I think this may alter my retirement planning strategy. The significant IHT (inheritance tax) pensions advantage has now gone (or will within two years). I am 74, have around £1.5 million in SIPPs largely untouched. I have fixed protection 2014, and my tax-free cash...

Do I need to make up for missing national insurance contributions to get my state pension?

Thursday 31 Oct 2024

I am a 51 years old, and have worked for the majority of my life. After my children were born in 2010 and 2012, I decided to take a break from work for a few years, returning to part-time work in 2016. I have heard people have a limited time to pay the government to make up for missing national...

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