Frozen Pensions - mother and her daughter baking

Frozen Pensions

Ask our experts about your options

 

Do you have a frozen pension? A frozen pension is often a term used to describe old workplace pensions that you’re no longer contributing to. Technically, a frozen pension is more accurately known as a ‘Preserved Pension’ as the pension isn’t frozen, you should still be receiving the providers’ annual statement with a pension fund value and can access the funds.

A BBC article (Feb 2017) quoted “a UK worker will change employer every five years on average”. Many of these could include a workplace pension as part of the salary package.

 

Frozen Pensions - mother and her daughter baking

Can I move a
‘frozen pension’?

Depending on the type of pension you have, you should be able to move frozen pensions into a more suitable policy. There could be restrictions and exit fees put onto the pension if you move, so it’s always advisable to get a full breakdown on the terms of the pension policy.

If you were employed in the public sector and received a defined benefit pension as part of your salary package, these are usually unfunded schemes, and you may not be able to move these pensions.

Does a ‘frozen pension’
still grow?

The short answer is most probably ‘Yes’, your frozen pension should still grow. The rate of growth could be reduced though as you nor your old employer will be contributing to the pension. The pension performance could also be affected by providers fees, market conditions and poor investments all reducing the retirement funds you could be enjoying. In extreme cases, the pension fund could be completely eroded due to the charges.

 
 

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What are my options for a ‘frozen pension’?

There are many options you can take when looking at your frozen pension:

Leave the pension where it is – if the pension is still performing well and you have control of it, it may be wise not to move it.

Combine your pension fundscombining your pensions into one performing scheme, may make it easier to manage and keep track of.

Release a lump sum – due to pension freedoms, you may be able to release a tax-free lump sum from your frozen pension if you’re over 55 years old.

Move to a modern pension – old workplace pensions set-up many years ago may not offer the flexibility and online access that is enjoyed by modern pensions.

 

Peace of mind

We work with all major UK pension providers, allowing us to find the pension that helps you meet your retirement goals and ensures your retirement is in experienced hands.

Our service can advise on:

Final Salary

To advise on Final-Salary (also called Defined Benefit) pensions, independent financial advisers need specific professional qualifications. We have all the necessary qualifications to assess and advise on final-salary pensions. It is a legal requirement should your final-salary pension be worth over £30,000 to get financial advice from a fully qualified independent financial adviser to transfer out your pension.

Pension Consolidation

It’s critical to keep a close eye on your personal pension savings. Moving your pensions into one policy could potentially make it easier to manage and reduce the chances of losing track of your money. We can advise on whether pension consolidation is in your best interests and if you can save money on charges by moving your personal pensions and we can manage all the transfers for you.

Pension Drawdown

We can help you to access your tax-free cash if you’re over 55 years of age, or if your pension doesn’t allow drawdown, move your pension to give you more flexibility. Our pension experts can offer advice on the best way of accessing your funds and highlight the impacts of taking your money early could have on your future.

Retirement Planning

If retirement is on the horizon, our financial advisers can help you to put a plan together, to make sure you’re on track for the comfortable retirement you deserve. We can also advise on if buying an annuity or taking your pension through pension drawdown is the best option for you and your future.

Pension Assessment

Pension performance can be volatile, and your private pension could decline in value quickly. We can check your pension performance to ensure you are not losing out on valuable pension funds for your retirement.

Pension Transfers

When considering transferring your pension(s) to another provider, there are many things you need to think about, but our Independent Financial Advisers can work through all the options to help you make informed choices.