The State Pension





LMJ is a firm of independent financial advisers specialising in the management of investment portfolios and pensions. We have been helping clients navigate complex financial markets since 2001 and from those very early days, our business has evolved primarily through client recommendations. Read More

The State Pension

The State Pension is a regular payment people can claim when they get to State Pension age. Most people build up some State Pension, but the amount they get varies. It's worth understanding how you build up State Pension and how much income it will give you in later life.

Once you get your State Pension, it gives you a regular income for the rest of your life. It can give you a reliable foundation for your income in retirement, although it might not be enough to support the lifestyle you want. So you may decide you want to save for yourself on top of what the State provides.

If you want to make a plan for your retirement, it's worth knowing what sort of State Pension you are building up. In 2011-12, a single person can get a maximum of £102.15 a week basic State Pension, though some people get less than this. Many people get more than this amount, because they also get an additional State Pension.

When will you be able to get the State pension?

You can get your State Pension once you reach your State Pension age. You do not have to claim it straight away, and you can increase the amount you get if you put off claiming it.

How is your State pension worked out?

The amount of State Pension you get depends how many qualifying years of National Insurance you have built up. You can do this by paying National Insurance contributions, or you may get National Insurance credited to you by the government.

What happens when you can't pay National Insurance Contributions?

In many cases, the government makes your contribution for you by giving you credits. You may also get credits if you are getting Child Benefit or caring for someone who is sick or disabled. You may also get other types of National Insurance credits.

A key part of retirement planning is exactly that – planning. When we discuss your protection planning objectives, we will review the following:

  • How much you can afford to save towards your retirement
  • How much income you would like to receive on an annual basis at retirement
  • Assessing your existing plans and ascertain as to whether you are 'on track' to achieving your targets.

Many people believe they cannot afford advice in respect of their existing pensions. In actual fact, by exploring all of the options, as a result of good advice, many people can increase their potential returns and release the full potential from their plans.

LMJ Financial Management Ltd offer an unbiased, whole of market professional assessment of your circumstances to ensure you receive the best possible retirement planning quotations.

Deciding which path you should take at retirement can seem like a very challenging decision. Income Drawdown and Annuity are the most common options, but both have their advantages and considerations.

Pension Release
Pension Release or 'pension unlocking' is the term used for taking the benefits from your pension before you retire. It is possible to draw up to the maximum 25% tax free cash and/or maximum income from age 55 onwards.

An annuity is a regular income for life provided by an insurance company. It can be bought with your pension fund or any lump sum.

A Self Invested Personal Pension (SIPP) is a type of personal pension plan. It works in the same way for contributions, tax relief and eligibility. However the main difference is that the SIPP has a more flexible approach to investments which can tailor around your needs.

Pension Transfers
A pension transfer involves switching your funds from one pension provider to another. Our Pension Transfer team can search the whole market for the best performing pension which avoids the high charges and poor performance of your current pension.

Please note that the minimum age will increase from 55 to 57 by 2028.

Third Way
Third Way products provide a selected but fixed income for a specified period while guaranteeing the value of the residual fund at the end of the selected term. This effectively eliminates the investment risk normally associated with this type of plan.

Pension Review
We pride ourselves on our pension review service. Regular reviews will ensure that your pension meets all of your objectives and is performing within your expectations as well as your desired risk category. By regular reviews you will be in full control of ensuring that your retirement will go as smoothly as it possibly can.

LMJ Financial Management are specialists in the 'at retirement' market and our experience in Income Drawdown and Annuities has allowed us to pinpoint exactly which way you should receive benefits from your pension. Therefore, our financial advice is specifically tailored to your circumstances. If you would like to know any further details with regards to any of the plans summarised above please do not hesitate to contact us and one of our advisors will be more than happy to help.

David Simmonds Financial Advisor IFA East Peckham


LMJ Financial Management Ltd

Upper South Hall
Bullen Farm Business Centre
Bullen Lane

East Peckham
Kent, TN12 5LX

Tel: 01732 874111
Fax: 01732 874222

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LMJ Financial Management Ltd, Upper South Hall, Bullen Farm Business Centre, Bullen Lane, East Peckham, Tonbridge, Kent, TN12 5LX
Tel: 01732 874111 Fax: 01732 874222 Email:

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