Frozen Final Salary Pension

cookster

Just received my annual statement for a frozen final salary pension.

The projection has gone down by £600 per annum which came as a surprise as I didn't think this type of pension could go down.

Any advice?

QrizB

Projections are just that - projections. Synthetic values based on assumptions.

If your previous projection was based on X more years at 5% inflation, and the latest is based on one actual year of 2.6% inflation plus (X-1) years at 5% inflation, the projection will be lower.

Marcon

The projection has gone down by £600 per annum which came as a surprise as I didn't think this type of pension could go down. 

Any advice?

Yes - read the notes which accompany the statement. That will explain the basis on which it has been prepared.

The pension isn't frozen, but is revaluing each year at (a minimum of) statutory requirements. QuizB's post above explains why the statement might appear to show a drop if it's projected to some future date.

xylophone

The pension isn't frozen,

Perhaps the OP's Pension Guide uses the term as in

the example here (which I found rather odd - deferred benefits is the more usual expression.)

https://forums.moneysavingexpert.com/discussion/comment/82132570/#Comment_82132570