magazine archive
magazine archive
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What is pound cost ravaging and how can I guard against it?
Thursday 27 Jun 2024I am planning on finishing work in a few months’ time and want to take my tax-free cash from my pension pot. I understand the rest of my pot will remain invested. However, I have been reading up on this and how to manage the investment. A couple of sources have mentioned ‘pound cost ravaging’. What...
Should I transfer my workplace pension scheme to a SIPP?
Thursday 20 Jun 2024I am currently considering my retirement options and have a question regarding transferring my pension from a workplace scheme to a SIPP (self-invested personal pension). I’m wondering if it’s possible to make such a transfer and what considerations or steps might be involved in the process. Diego...
I want to leave funds in my SIPP to my granddaughter, how do I go about it?
Thursday 13 Jun 2024I’m currently 70 years old and intend to leave whatever is left in my SIPP to my granddaughter who is 17 years old. What are the current regulations regarding at what age she would be allowed to access the money, and is there any method to ensure it stays invested until she is of pensionable age?...
If I already have a salary sacrifice pension should I move to a SIPP?
Thursday 30 May 2024If you already have a salary sacrifice pension from your employer, is there anything to gain by moving to a SIPP? Anonymous Rachel Vahey, AJ Bell Head of Public Policy, says: Before answering it’s probably worth quickly explaining what salary sacrifice is and how it works in relation to a pension...
Do I have to take my state pension when I reach 66?
Thursday 23 May 2024My 66th birthday is in August. I am currently still working, although on a part-time basis, but my income from that is sufficient to meet my needs for the meantime. However, I am due to get the state pension in a few months’ time, but don’t really need the money. Do I have to take it? Could I delay...
How much could I withdraw from my pension in a year without incurring tax?
Thursday 16 May 2024If a person retires before state pension age, and their only taxable income is from a SIPP, how much can they withdraw a year tax free by taking a lump sum and some income before any income tax is due? What are the advantages or disadvantages of taking a tax-free lump sum like this as opposed to...
Should I tap into my untouched SIPP in anticipation of a future pensions shake-up?
Thursday 09 May 2024I have a SIPP worth just over £1.5 million. I have previously applied for fixed protection 2014 and understand that this means my tax-free cash allowance is higher than normal. I am aged 73 and as yet haven’t touched the funds. Furthermore, I am not proposing to take any income in near future,...
Can I avoid emergency tax on a pension withdrawal?
Thursday 02 May 2024I have a SIPP I haven’t yet touched. I would like to take money from that pension pot – both my tax-free cash and another lump sum. However, I have been told that if I take this other lump sum, I will have to pay emergency tax on this amount. Why is this, and can I avoid it? Fran Rachel Vahey, AJ...
Should I use a SIPP to supplement my workplace pension?
Thursday 25 Apr 2024I’m going to be 50 next year, and so far, I have saved about £18,000 in a workplace pension. I have been automatically enrolled since 2016. My question is should I stick with it and get a SIPP pension as well? Or should I just put more in the workplace one until retirement? I hadn’t really thought...
Can I leave some of my pension to my favourite charity when I die?
Thursday 18 Apr 2024I would like to leave my favourite charity some money from my pension when I die. My husband will inherit my other assets through my will, and he will have enough money to be comfortable. We don’t have any children. Can I do this? I thought there was a lot of flexibility to leave my pension money...