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.

Who Can We Help?

Due to the constraints and terms of various pension funds, our Free Pension HealthCheck can only advise people who fit into the below criteria:

We can advise on:

  • Private or personal pensions
  • Old workplace pensions
  • Defined benefit (final salary) pensions
  • Pensions value over £10,000

We can’t advise on:

  • State pension enquiries
  • Unfunded public-sector pensions (E.g NHS)
  • Non-UK residents or looking to leave the UK
  • If you’re already receiving annuity payments
  • Pensions values under £10,000