What is a Frozen Pension?

A pension refers to the obligatory payments most people make when they are in employment. The money is deducted from their wage each month and stored with a view to being unlocked upon the employees’ retirement. It’s an investment that is designed to help you take care of yourself and have an income when you are no longer working or in employment. A frozen pension describes the same situation but with a change in circumstances. Namely, a scheme into which payments have finished. This situation most commonly arises when a person leaves their employment to either work for another company, or ceases work altogether, possible due to ill health, injury or having children.

When this happens the pension is then ‘frozen’. Usually, the funds already paid in will not be accessible and can often be altogether forgotten by the employee. These funds are still subject to market variations and economical fluctuations and thus the amount can rise and fall depending on these factors. It is therefore important to consider making an attempt to access these funds before they can be depleted entirely. Regaining access to these funds can be a huge help for people in need of a bit of extra money whether it’s to pay debts or get a helping hand with Christmas expenses.

An old company frozen pension is rarely something worth keeping hold of. It can often be more wise to remove the funds and re-invest them elsewhere. Be careful when attempting to access the funds as this action can incur additional taxation fees.

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Pension Sleuth offers a service which can reunite you with your lost pensions funds. £1000’s could belong to you that you just never knew you had. Please fill in this form or call FREEPHONE: 0333 002 2198

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