If 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 taking the full tax-free lump sum in one go?DaveRachel Vahey, AJ Bell Head of Public Policy, says:From

I 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?FranRachel Vahey, AJ Bell Head of Public Policy, says:Pension savers have a great deal of flexibility to decide how to take mo

Stocks in London started the week on the front foot, picking up strength as Monday?s trading session wore on, to post healthy gains by the close.Gold hit a new high before fading, airlines and miners were in demand, while Entain prospered on bid speculation.The FTSE 100 index closed up 32.31 points, 0.4%, at 7,943.47. The FTSE 250 ended up 128.64 points, 0.7%, at 19,854.58, and the AIM All-Share c

I have read that there was a HMRC consultation on the abolition of the lifetime allowance which contained a proposal that from April 2024 untouched pension pots would be subject to income tax when they were passed on death. Whereas now the pot is not taxed if the individual dies before age 75.I would be grateful if you would advise whether this proposal was approved and will come into effect from

The FTSE 100 got a boost in London on Tuesday at midday, thanks to the UK manufacturing sector returning growth in March.The FTSE 100 index was up 23.76 points, 0.3%, at 7,976.38. The FTSE 250 was down 58.37 points, 0.3%, at 19,826.36, and the AIM All-Share was up 0.40 of a point at 743.66.The Cboe UK 100 was up 0.2% at 797.51, the Cboe UK 250 was down 0.7% at 17,220.34, and the Cboe Small Compani

I am 64, a homemaker, and unemployed with two tax years to go before I receive my state pension at 66 years old. I have a SIPP, that I have not yet touched. I also have an ISA.I would like to take an income for the next two tax years before I receive my state pension. I?m considering moving my SIPP into drawdown, taking my tax-free cash, and some income so I can take advantage of my personal tax a

Equities in London made an underwhelming start to the week, in a sign of investor unease ahead of a key few days on the fiscal and monetary policy fronts.A pre-election budget will be the key event in the UK this week. Eyes will be on whether UK Chancellor Jeremy Hunt will size up some tax relief. In the eurozone, focus will be on the European Central Bank?s interest rate decision on Thursday. In

I have individual protection 2016. I took my public service pension in 2019 with a tax-free lump sum below the current cap of £268,275, which is based on 25% of the current lifetime allowance of £1,073,100. I also have an uncrystallised SIPP (with AJ Bell). In the next financial year, I?m planning to take the tax-free lump sum from my SIPP up to the maximum tax-free allowance cap. Am I corre

Stocks in London opened mixed on Wednesday, with the FTSE 100 dragged down by soft earnings from HSBC and Glencore, two of its largest constituents by market cap.The FTSE 100 index opened down 50.16 points, 0.7%, at 7,669.05. The FTSE 250 was up 3.10 points at 19,112.73, and the AIM All-Share was down 1.28 points, 0.2%, at 751.77.The Cboe UK 100 was down 0.6% at 768.27, the Cboe UK 250 was up 0.2%

Please could you explain how pension drawdown works? Instead of taking 25% tax-free lump sum in one go, is it possible to take a smaller amount tax free (e.g. 4% or 5%) per year over the course of several years, thus leaving part of the tax-free amount still invested until I need it? Am I allowed to switch pension provider once I am in drawdown?I know the current age to access a SIPP is 55 years o

It hasn?t been a blockbuster week for US stocks, but the S&P 500 index has quietly crept back towards the 4,600 level putting it less than 5% below its January 2022 record high of 4796.56.A rally in large-cap tech stocks such as Alphabet (GOOG:NASDAQ) and Apple (AAPL:NASDAQ) have helped the mood, while investors have also been looking for ? and finding ? evidence of a cooling of the US economy to

Interim performance seen as reassuringFull-year results to meet forecastsGreen power deal to boost marginsDespite concerns over the sharp slowdown in new housing starts, Speedy Hire (SDY), the UK's leading tool and equipment hire services company posted a resilient first-half trading update and announced a £20 million acquisition.Speedy shares, which have lost nearly a quarter of their value this

Revenue rose 17% to £258.3 millionShares up 18% in morning tradingPre-tax profits up 61% to £56.4 millionShares in YouGov (YOU:AIM) were up over 18% to 818p, as the research and data analytics group reported a 63% rise in adjusted pre-tax profit to £56.4 million for the year ended 31 July 2023 despite a challenging macroeconomic background.YouGov shares however are down around 20% year-to-date.

I'm disillusioned in my desk job and considering a career change. Obviously pensions are only one consideration but I was wondering which careers give the best options? It's pretty clear that it's the public sector jobs that come out on top, but what are the ultimate 'best' schemes out there?AnonymousTom Selby, AJ Bell Head of Retirement Policy, says:There are broadly two types of workplace pensio

If you crystallise a pension and take the full tax-free lump sum, how much per year can you still contribute thereafter? With funds left in the pension, can you still buy and sell investments as you see fit so long as you only contribute no more than that allowed?SimonTom Selby, AJ Bell Head of Retirement Policy, says:'Benefit crystallisation events' are points when your pension savings are tested

Can I buy an annuity with cash from savings or an ISA? I've heard the funds must come from a pension fund - is this true?MartinTom Selby, AJ Bell Head of Retirement Policy, says:An annuity is a guaranteed retirement income for life paid to you by an insurance company, usually in return for your pension pot. However, you don't have to have a pension fund to buy an annuity. You can use any pot of mo

I turn 70 in 12 months' time and I'm planning to start taking an income from my SIPP for the first time. I've calculated I'll need about £12,000 a year (pre-tax), alongside my state pension, to fund my lifestyle. I have already taken my 25% tax-free cash and have a remaining pot worth just over £300,000. I'm keen to explore a 'natural' yield investment strategy, with the aim of leaving as much o

Stock prices in London tumbled on Wednesday, as reverberations from Fitch downgrading its credit rating for the US were felt in equity markets on both sides of the Atlantic.The FTSE 100 index slumped 104.64 points, 1.4%, at 7,561.63. The FTSE 250 tumbled 252.78 points, 1.3%, at 18,812.88, and the AIM All-Share was down 6.54 points, 0.9%, at 758.09.The Cboe UK 100 ended down 1.5% at 753.11, the Cbo

Stocks in Europe were rocked by Fitch lowering its US rating on Wednesday, evoking memories of S&P doing the same almost 12 years ago to the day.Stocks suffered then, and they similarly struggled now. Barely a handful of London's 100-strong flagship large-cap benchmark were on the up, with BAE Systems among those shielded by the fallout after it boosted guidance.'There is a saying that when the US

What's the best way to use your pension tax-free lump sum? Would it be to pay off the mortgage? What about the benefits of taking it in tranches to supplement income and should it be taken as an uncrystallised lump sum each time? Or from a drawdown plan?HarrietTom Selby, AJ Bell Head of Retirement Policy, says:There is no 'best way' to use your tax-free lump sum, but it's important to think carefu