magazine archive
magazine archive
Ask Tom
‘What tax charge will I face at 75 in relation to the lifetime allowance?’
Thursday 18 Apr 2019I am 64 years old and understand that on attaining 75 there is a compulsory tax charge (triggered by what I understand is called a ‘benefit crystallisation event’) in relation to the lifetime allowance. But what type of tax is liable? Is it income tax or a 55% penalty? I also have 75% of my fund...
‘What are Pensions Dashboards and when will I be able to use them?’
Thursday 11 Apr 2019What are ‘Pensions Dashboards’ and when will I be able to use them? Felicity from Gloucestershire Tom Selby, AJ Bell Senior Analyst says: You’ve probably read a bit about Pensions Dashboards in the past week or so after the Department for Work and Pensions gave the initiative the green light...
‘How much should I worry about drawdown charges?’
Thursday 04 Apr 2019I’m researching my options before going into drawdown and came across some research that suggests charges can range between 0.4% and 1.6%. Is a price difference of 1.2% worth worrying about? Emma, via email High costs and charges can have a huge impact on your retirement, so making sure these are...
‘Should I spread my money across different providers?’
Thursday 28 Mar 2019There have been various horror stories about investments failing and people losing everything. What are my rights if this happens and is it worth having my money with lots of different companies to maximise FSCS cover? Jane, via email Tom Selby – AJ Bell senior analyst This is a common question and...
‘Have we got enough pension savings for £25,000 annual income?’
Thursday 21 Mar 2019Anonymous My wife and I have just turned 65 and are about to start taking an income from our pensions. I have a private pot worth just over £300,000 and we also have a bit of state pension each (worth about £10,000 a year combined). We have paid off our mortgage and need a bit of help managing our...
‘Can you help me understand the state pension age changes?’
Thursday 14 Mar 2019Trevor says: I’m a bit confused about the state pension. I’ve seen some stories saying it is now 65 and three months – does that mean it won’t be increasing to 66? Tom Selby, AJ Bell senior analyst says: Unfortunately no, but it’s not surprising the approach the Government has taken to raising the...
‘Should I invest my pension in cash while markets are uncertain?’
Thursday 21 Feb 2019Mike says: ‘With all the uncertainty going on at the moment I’m nervous about investing my entire pension pot in the stock market. I’m 45 and not planning to draw an income from my fund until I’m 65 – does it make sense to invest in cash in the short-term?’ Tom Selby, AJ Bell senior analyst says:...
'I’ve only got £50,000 in my pension. Should I top up?’
Thursday 14 Feb 2019Roy's question ‘I’m 45 and have only managed to save £50,000 in my pension, which I know isn’t enough. My aim is to retire at 65 with an income of about £20,000 in today’s prices. I’m also worried about the impact Brexit could have on the economy. Bearing all this in mind, is now a good time to top...
‘I’m confused about DB pension transfers’
Thursday 07 Feb 2019Bill from Devon ‘I’m thinking about transferring out of my defined benefit pension scheme but struggling to decide if it’s the right thing to do. I’ve been offered a £230,000 transfer value and have a meeting with an adviser to discuss it. ‘I understand there are risks involved but I’m confident I...
‘Can I boost my state pension via National Insurance credits?’
Thursday 31 Jan 2019Stephen says: ‘I’m 63 and a little short on what I need for retirement, so looking to boost my income in any way I can. I understand you can increase the value of your state pension by purchasing National Insurance credits – is that correct?’ Tom says: It is possible to boost the value of your...