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Frozen pension from old employer - can I cash in?

Hi

I have a pension through an old employer which is frozen and has been since I left the company in 1995. Is there any way I can cash this in? If not, what is the standard thing that happens with these sorts of pensions that are frozen

Also, I have a friend who has a stakeholder pension with 4K in it in a similar state. Would this be any different a situation from my one?

Regards

Chris

Comments

  • dunstonh
    dunstonh Posts: 118,554 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is there any way I can cash this in?

    Not unless you are over 60 and all your pensions are less than £16k in value (at this point in time).
    If not, what is the standard thing that happens with these sorts of pensions that are frozen

    Depends on the type of pension. Some continue to grow with the investment returns if the pension is money purchase. Others get increased every year more or less in line with inflation if they are defined benefit.
    Also, I have a friend who has a stakeholder pension with 4K in it in a similar state. Would this be any different a situation from my one?

    A stakeholder pension cannot be frozen so you are not in the same position. Indeed, frozen is such a bad term as the pensions do not get frozen.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AFCChris
    AFCChris Posts: 96 Forumite
    Thanks for the response.

    As I mentioned it's my friend's stakeholder pension so I'm not sure of the exact details but she has left the company so she's wondering what she can do with it. If it's not frozen then what state would it be in and what can she do about it?
  • dunstonh
    dunstonh Posts: 118,554 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    if she is not contributing to the stakeholder then it becomes paid up. It is still invested and benefiting from investment returns. The only difference is that she is not contributing to it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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