magazine archive


magazine archive

Ask Rachel

How can I check my entitlement to a full state pension?

Thursday 13 Mar 2025

I am aged 58. Like many people I guess, I have some gaps in my career where I haven’t earnt anything. I am now worried these gaps may mean I cannot get my full state pension. How can I check that? And if I am short is there anything I can do about it? I keep seeing something about plugging national...

Can I still use a cash ISA as a way of saving for retirement?

Thursday 06 Mar 2025

I have read some press reports about the Government getting rid of cash ISAs. I have an old one of these which I took out a few years ago, but I would like to take out a new one with a fixed interest rate. I want to do this before the end of the tax year in case something happens. I also have an...

What should I do about changes to inheritance tax on pensions?

Thursday 27 Feb 2025

I am getting concerned about the changes to inheritance tax on pensions. I am 78 years old, and my wife is 68. We have two grown up children with families of their own. My wife is in good health, whereas I have the usual sort of challenges befitting my age. Our total estate is worth about £900,000...

Will I face emergency tax on my lump sum withdrawal?

Thursday 20 Feb 2025

I am aged 64, working full time, and due to get my company pension later this year. I have also got a SIPP which I have built up from my own pension savings. I would like to take some of that money out soon. Probably as a sizeable lump sum to partly spend, or maybe gift to my son. From reading some...

Do I really face a 90% effective tax rate thanks to pension IHT changes?

Thursday 13 Feb 2025

I have been interested to read recent commentary on the proposals to extend IHT (inheritance tax) to pensions. One point caught my attention which was the reference to a 90% effective tax rate. I’m pretty certain my estate would fall in that category, but could you explain the 90% calculation,...

Should I combine my smaller pension pots with my larger SIPP?

Thursday 06 Feb 2025

I have built up five different pension schemes under different employments over the past 20 years. Three are worth less than £8,000 each. However, my main SIPP is worth considerably more, around £300,000. My question is would I be better keeping these pensions separate and only taking them when I...

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...

Pages