What Are Frozen Pensions?

Posted on: August 16th, 2017
Categories: Life Planning, Lifestyle Financial Planning, Retirement Planning

Mike Robertson Associates Limited, based in Battle, East Sussex are Lifestyle Financial Planners; we offer Retirement Planning Advice, this includes such things as help with Frozen Pensions.  Our service offering also takes into account advice about: defined benefit schemes, pension options, occupational, preserved and company arrangements, transferring, employer, group, draw-down and flexi draw-down pension plans.  We service clients in, Bexhill, Hastings, Rye, Lewes, Crowborough, Uckfield, Seaford, Newhaven, Brighton, Tonbridge, Sevenoaks and Tunbridge Wells.

Frozen Pensions? 
This type of arrangement is the scheme you left behind when you left your employers service.  Now classed as “frozen” meaning, you are unable to contribute any further amounts of money to that plan.

Also known as an “occupational frozen” or “preserved”.  Frozen Policies are in many cases not accessible until a minimum age of fifty-five. That said, most individuals wait until they reach their “selected retirement age”.

In reality, though, all types of pension plans have charges that vary, and some are better than others. Various retirement plans that were taken out over five years ago can represent poor value today and many people can improve their position by moving to a more modern, flexible, lower charging and potentially a better performing plan.

The single biggest improvement that can often be made to an existing pension pot is to review and analyse the associated fees and costs. Too many older style schemes could still have associated higher fees and charges imposed to cover the assumed commission of a financial adviser visiting every year and reviewing the individual’s financial circumstances.

The reality, as in most cases, these visits never happened.  So if you have not had an ongoing conversation or appointment with your existing Independent Financial Adviser to discuss, review or examine your Pension Strategies, then chances are you might be paying for a service you are not receiving.

Pension fees and charges can differ widely depending on the type of pension, the investments you have and the provider you’re with.  There are a number of charges, fees and costs that may be applied to your pension.  And although some of these might be small on paper, they can result in you having a lot less in your pension pot when you reach retirement.  Small percentage charges really add up over time, the charges that you pay your pension provider every year are one of the key factors in determining how much your pension will be worth when you need it at your “selected retirement age”. Today, modern pensions, frequently have far lower charges and an in-depth review will determine whether you can save money on these.

Following changes introduced in April 2015 you now have more choice and flexibility than ever before over how and when you can take money from your pension pot under the flexi-access drawdown rules.

Understand your options, take professional advice, When was the last time your finances went through their MOT test?

A Lifestyle Financial Planner will:

  1. Help people focus on actual values and motivations in their lives;
  2. Determine their goals and objectives as they see their lives develop; and
  3. Using these values, motivations, goals and objectives to guide the planning process and provide a framework for making choices and decisions in life that have financial and non-financial implications or consequences.

If you require assistance regarding a frozen pension or type of retirement plan mentioned above for whatever reason, Mike Robertson Associates Limited, Lifestyle Financial Planners can assist you to understand your current financial position.  We offer a one hour, no obligation, complimentary consultation. We service clients across Sussex and Kent.  Including smaller towns such as Ashford, Tenterden, Heathfield, Bodiam, Mayfield, Rye, Battle, Bexhill, Hastings, Eastbourne, Hailsham, Herstmonceux, Sevenoaks, Tunbridge Wells, Tonbridge, Crowborough, Newhaven, Cranbrook, Seaford, Lewes, Brighton and Hove.


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Mike Robertson Associates Limited is an appointed representative of Lighthouse Advisory Services Limited, which is authorised and regulated by The Financial Conduct Authority. Registered in England No 4501167. Registered Office 30-34 North Street Hailsham East Sussex BN27 1DW

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Mike Robertson Associates Ltd is located in Battle, East Sussex, near Hastings, Bexhill and Eastbourne