Frozen pension; can I cash it in? Well relatively speaking yes you can cash it in. can I or should I cash in a frozen pension has always been confusing over previous years! Why? Well because frozen pensions and the unknown uncertainly over whether you can cash it in or not has not always been clear. ‘frozen pension can I cash it it’ is a viable option for most of us, but you do have to check your polices and it is worth checking with your pension company also. Make sure you do some research and find out what your frozen pension cash options are.
• Pension freezes or pension plan freeze means you can cash it in so along as you are aged 55 or older, then your pension freeze means by uk law you can cash it in at a rate of 25%. But with a frozen pension then your future pension pot will not grow or it will not be growing in retirement income.
• Frozen pension will not provide any more added benefits or an increased income because it will not be growing over the years and in the future, hence the word; ‘frozen’. A frozen pension policy may not be available to any new employees you have recently joined a company or has recently joined the company 6 months ago, so therefore there would be no frozen pension to actually cash in.
• Frozen pension: can I cash in my frozen pension: Here are some tips to check out if you can indeed cash in your frozen pension:
o If you have lost your frozen pension then you can use the uk government free lost frozen pension tool to help you locate your pension
o If you have been part of a company for at least a few years then there is a good chance you will have a frozen pension where you could receive a frozen pension cash payment. The reason why you may be eligible to cash it in is because the chances are you would have built up a pension pot size that could give you a decent return or you could continue to pay into your pension further, thus giving you a bigger pension pot to enjoy your retirement.
Frozen pension: can I cash it in? There are many benefits to cashing or getting cash payment from your frozen pension. Here are the main benefits why UK pension policy holders cash in their pensions:
There are many concerns amongst companies big and small when it comes to pension policy schemes. The 3 main reasons why companies tend to freeze pension polices:
1) Companies want to try and stay competitive in the market place and compete with other companies that do not have polices or frozen pensions where staff cannot cash it in or receive a payment of any kind
2) Some companies say the employees no longer or have much interest in pension plans or polices nor do they want to pay in due to financial problems or they simple can no longer afford to pay into their pensions
3) Rules and pension regulations make it difficult and very costly for companies to maintain or set up pension plan so they simply find it difficult to even get started with the pension polices implementation for their employees.
Before your pension became frozen you may have worked for the company and if you did then you will not likely be effected by the freeze. This is because you had an active pension before it became frozen. Before your pension becomes frozen you are actually protected under the UK pension laws. So if you are one of these people then you could indeed cash in your frozen pension and receive a cash payment.
You may or may not have a frozen pension, but it is worth understanding what your options are when it comes to your pension. If you are unsure about what is available to you and if you can cash in your frozen pension or would like to know how to cash in your frozen pension to receive a frozen payment then feel free to search uk pension related government sites that offer free information about this or you can contact us above and we would be more than happy to try and help you.