Several scam websites have been suspended that were misleading people about accessing their pension funds before age 55. The National Crime Agency has suspended around 18 pension scam websites as well as those using text messages and cold calls. Normally people cannot access pensions before 55 unless seriously ill, but scammers were enticing people to access funds early against the rules. Managing frozen pension plans still requires active management and planning like active plans, reviewing strategies for funding, investments, benefits and finances. Pension plans may be frozen to minimize total obligations, and companies will need plans for covering shortfalls if underfunded and making lump sum payouts.

1. Scam Websites Frozen in Pension campaign
There has been report of many websites being suspended who have been cheating people of their pension funds by giving misleading information. They reportedly ran scam campaigns encouraging members to dig into their pension pots even before they reach 55 by offering personal loans or cash incentives through misinformation.
Going by reports, National Crime Agency, has already suspended around 18 such pension campaign websites. These Scamsters, besides using websites, as marketing medium, have been using text messages, and cold calls to entice people to access their frozen pension.
It is common knowledge that normally people cannot access their pension funds before the age of 55, unless they are seriously ill or someone situation that warrants such move else they are liable to pay heavy tax and in some cases penalties. One can access to unlock their frozen pension.
Managing Frozen Pension Plan As Financial Obligation
Even the frozen pension plans need active management. When a company announces freezing of a pension plan, meaning there will be no new enrollments in the plan, this doesn’t mean that frozen pension plans become less of a challenge.
What To Do When Pension Plan Freezes
Managing the frozen pension plan as a financial obligation requires equal amount of planning as for managing active pension plans. Frozen pension plans are not too different from active pension plans – the only differ in relative sizes and treatment of the financial obligation that increases by means of service associated benefits.
To effectively manage their frozen pension plans, sponsors need to review their financial structure, strategies and perspectives. A well documented strategy is always recommended for companies looking for management solution for frozen pensions because it will give a common reference document to both – the sponsors and the stakeholders.
The key for companies that are considering freezing the pension plans is to time the pension plans in order to minimize the total obligation or cost.
If the pension plans are under funded, companies will need to cover the short fall and for obvious reason companies are unwilling to do that. Moreover, if the company decides to make lump sum payouts or purchase guaranteed annuities for the beneficiary, the company will need to plan for actuarial, administrative and legal costs.

2. With support of experienced financial advisers, companies may plan strategies that will completely fit into the requirements of your plans and objectives. A thorough analysis will be required to understand and evaluate all the tactical aspects of the plan strategy. Focus on following policies that largely affect your plans:
1. Investment
Investment greatly governs the selection of the plan, asset allocation, implementation and monitoring of the plan. Keep in mind some major considerations like:
 What will be the best initial investment cost that is suitable?
 What type of instruments or bonds will best match to your liabilities?
 What kind of equities will best match to your liabilities?
2. Funding
Funding policies determine the timing and amount of the contribution. Focus on:
 What funding methods are available and which will be most suitable to adopt?
 Risk versus reward analysis at various levels of the contribution
3. Benefit
Benefits are important to be evaluated right at the beginning as they allow better administration of the plan and management of legal requirements (if any). Consider:
 Are there any compliance issues that need to be addressed for better estimation of obligations?
 Do you need to amend a pension plan in order to offer unlimited lump sum pay outs?
4. Finance
Finance basically recognizes company’s financial and risk capacity. It includes:
 Evaluating the size of the involved risk of the plan to the company
 Understanding the metrics of risk measurements
 Identifying the appropriate measures for risk settlement
Take Future Into Consideration
Companies need to think deeply and carefully before taking any decision or amending their pension plans. Guidance from qualified financial adviser will assist greatly to reach an idyllic decision for managing frozen pension plans as a financial obligation.

3. The Unintended Consequences of Frozen Pension
The new pension legislation will make coming generations feel the pension benefits differently. One of major concerns among pension holders and experts is that these new changes can also have some unintended effects.
Such effects can push the companies to either drop or freeze pension plans rather than continue to fully fund workplace pension and pay out higher insurance premium. Another consequence of such frozen pension shall be freezing of loans and hardship distribution when it is needed the most.
Initially it just seems to be an esoteric discussion about different pension plans and contributions that were issued before new law, but now it has taken profile of a fraught. Pension plan owners are now also a part of the cat fight between vendors and employers. As a result, employees are kept away from having access to their own funds that they critically need to survive through economical mess or hardship.
In addition to amending the traditional pension plans, the new legislation seek to introduce new forms of retirement plans that are generally offered in the private sectors. Which is why, a lot of companies have now shifted from traditional pension plans that offer defined benefits towards new saving plans in which the employers are supposed to make defined or set contributions.
The Age Associated Consequences
The new pension laws encourage younger workers to save more to have significant pension funds when retired. For younger employees, the stated laws provide incentives. On the other hand, middle-aged employees may gain more by their efforts to stabilize their traditional or defined benefit pension plans. Here is an outline of how the employees of different age groups will be affected:
For Young Employees Aged Between 20 – 35
The employees in this age group get the longest time to save and contribute for their retirement. The law allows automatic enrollments and automatic increases. This diversifies the holdings of the younger employees.
For Older Employees Aged Between 35 – 60
Employees in this age group, as starting late, will have less time to contribute for their pension plans. They can take lump sum payout if offered by the employers. They can even opt to transfer their pension plans to other investments schemes as allowed in the law.
An experienced financial adviser can explain the consequences and their affects based on your circumstances along with helping you track and recover your frozen pensions. Their suggestions

4. can help unlock your frozen pension besides helping you manage your pension funds so that your life after retirement is secured with regular income.
What To Do If You Have Been Offered Lump Sum For Your Pension Funds
In case you are entitled to one or more pension funds from your previous employers, you shouldn’t be surprised if you get a letter from them offering you a lump sum for your pension. So, always make sure you do not have any frozen pension.
The new rulings allow administrators to collectively calculate the lifetime benefits with higher interest rates than previously used. This allows employers to offer smaller amounts of lump sum payout.
Many employers who look for trimming their pension obligations offer lump sum pension payouts to former as well as current employees who are just on the verge of retirement. It should however be noticed that employees who continue to work with the employer may not be eligible for lump sum payout until they retire or leave the job.
Even the pension plans that did not have any option of offering lump sum payout are now amended by employers to benefit from this new rule.
In case You Are Offered Lump Sum Payout
When you are offered lump sum payout for your pension, you as an employee gets removed from the plan. It further reduces the future insurance costs of the employer. It is necessary for the pension plan to be 80% funded if the employer wants to offer you a lump sum payment.
Pension closing plans are more attractive for companies with well funded plans. The higher the interest rates, the cheaper it gets for employers to offer lump sum payouts. So, many of the employers may want to wait until the interest rates rises a bit further before terminating their pension plans.
Weigh Your Options
If you are offered lump sum payment for your pension, take your time to weigh your options well because once you take a step forward, there’s no going back.
According to researches, when given a choice between lump sum payout and annuity, over 70% people choose hard cash in form of lump sum payouts. But with current melting market scenarios, people are not too confident about managing their money and they desire guaranteed regular income. Moreover, lump sum payment might not include the subsidized benefits that are

5. offered by the employers to older employees as an incentive to leave or retire early. Thus only 50% individuals prefer accepting the lump sum offer.
Even if you have been offered a lump sum payout, the option of monthly annuity payable at the normal age of retirement is always open for you. With annuity plans, you will never need to worry about effectively managing your money; however there still be some risk of inflation.
Until you are a skilled investor, managing the money could be a challenge while also keeping income tax considerations in mind. To reach the best decision, you can hire an experienced financial advisory service provider who may offer free or paid assistance to manage and administer your finances.
Professional financial planners can advise you to secure your life after retirement with regular income. They may also help you to clear your doubts and help you understand your rights based on special circumstances you are into.
Frozen Pension, Dormant Or Paid Up Pension
The UK government is currently looking at making it simpler for employees to take their pensions with them as they switch one job to another. A clear system is expected to be developed in which individuals with small pension funds can carry forward their pension plan when they switch jobs.
But these are still in the process and yet to be implemented; the current pension rules does not allow individuals to combine their pension funds as they move from job to job during their working years. These results in frozen pension pots or lost money. Many may end up with multiple pension funds stuck in different pension plans.
There may be a number of reasons for having frozen pension pots including change of a job, change in marital status and change in financial circumstances or probably it is redundancy that you stopped making contribution in to your pension pot. Such types of left out or locked pension funds are called paid up pensions. Some people also refer to it as frozen pensions or dormant pension funds.
No matter what you call it, your pension funds will keep going reducing in its value each year if you leave it as is. This is mainly because of two reasons:
1. High charges levied by the pension providers. Your service provider can charge as much as 3% over your total fund each year.
2. It might be the case that your pension fund is invested in stocks and shares and due to bad investment performance, your funds have remained at a same or lower value.

6. What To Do
There may be a huge amount locked in your frozen pension or paid up pension pots and you should not leave it ignored.
You may get in touch with experienced financial advisers who could help you track all (if you have multiple pension plans) your frozen pots. Even if your pension funds have been frozen by your employer because of no further contributions, change in job or migration to other countries, the option of getting your funds transferred to other schemes and bonds may still be open for you.
You may again take assistance from qualified financial advisers to suggest you the right kind of investment schemes or bonds so that you get maximum benefit from your pension. It is always good to look at the many options available for you. For example, if your pension fund is evaluated at £50,000, you will get about £40 / week according to current rates of annuity – ask yourself, would this amount be sufficient for you and your dependents during the time of your retirement?
If you think this amount is not sufficient, then it perhaps is the right time to consider other options. You can transfer or move your pension fund to different plans that offer better returns on your funds.
An expert’s advice can help you select the most suitable scheme for you depending upon your current circumstance. So, do not ignore your frozen pension funds or paid up pensions, as it always pays to keep looking for better options.
Keeping Your Pension Benefits Even If You Leave The job
If you are a member of any pension plan set by your employer, the pension benefits only belongs to you. Even if you leave the job for any reason, no one else except you can claim the pension benefits. If you are thinking about what you can do with your pension contributions after leaving (not retiring) your job, then there are many options to make the most of your pension funds including:
1. Leave the pension as it is to get it at the time of your retirement
2. Continue to pay in your pension pot even after leaving the job
3. Getting it transferred to new schemes
4. Get the refunds of your contributions
5. Start getting your pension and its benefits

7. Let’s explore these options in detail separately however you are recommended to get in touch with your pension administrator to know about the applicable rules and regulations for each option.
1. Leaving The Pension As It Is
If you leave a job and do not join a new one, your pension pot will be frozen until you get retired. When you leave your pension pot without any further contributions, you may not be entitled to certain benefits. But you will still be eligible to get certain benefits such as death benefits or annual increments if you are under Money Purchase Scheme or Defined Benefit Scheme.
2. Continued Payments Into Pension Pot
If you continue to contribute towards your pension plan even after leaving the job, you are eligible to receive tax relief on the payments you make.
3. Transfer To New Schemes
The option of transferring your pension funds into new scheme is always available. You must seek advice from your financial adviser about best schemes suitable for your financial goals.
4. Getting Refunds
The option of refund is available if you have been a member of the pension scheme for a period less than 2 years. The refund option isn't unavailable for retirement annuity, stakeholder pension or personal pension. When you get the pension refunded, taxes are deducted at following rates:
 20% up to refund of £20,000
 50% up to refund of over £20,000
The taxes are deducted before making your payments. No further tax will be applicable on the lump sum payment but you cannot reclaim the deducted tax.
5. Start Getting Your Pension
If you leave your job and start getting funds from your pension pot, you may be offered different options depending upon your pension scheme.
In addition to above options, there are some more options available when you leave your job under some special circumstances such as:
 If you leave your work because of illness, you may be allowed to get your pension funds immediately.
 If you leave your work and start getting state benefits like job seeker’s allowance, your pension normally won’t be affected at all.

8. It is advisable to contact your administrator of pension schemes before you make any decision. This is necessary because different schemes may have special rules that you are bound to adhere with.
State Pension In Different Countries - Check Else Your Pension Freezes
Countries that are under social security agreement with UK have different arrangements for State Pension payments. Below information could help to understand these arrangements:
1. State Pension Payment In Barbados
Effective from April 1, 1992, the UK State Pension in Barbados is paid at the same rate as it would have been if you were in UK. Before this date, you have your pension either at a rate when you left UK or at the rate when you first got entitled to State Pension (whichever is later).
If you are a Barbadian working in UK, same rule is applied for pension payment. You should have sufficient insurance contributions in each country’s plan to satisfy the contribution condition and to qualify for the pension payment from each country. In case you do not have insurance, your Barbadian insurance can be treated as UK insurance.
2. State Pension Payment In Bermuda
If you are an ordinary resident of Bermuda, you are entitled to UK State Pension at the same rate as any other pensioner residing in UK. For Bermudans working in UK, same rule applies. You should have sufficient insurance contributions in each country’s plan to satisfy the contribution conditions to qualify for the pension payment from each country. In case you do not have insurances, your Bermudan insurance can be treated as UK insurance.
3. State Pension Payment In Canada
There are arrangements to get UK State Pension in Canada but if you cease to live as an ordinary resident in UK, you will not get the annual raise and have a frozen pension at a rate when you left UK or when you first got pension entitlement if you were already residing in Canada at that time.
Periods of your residence in Canada can be considered to decide your entitlement to the UK State pension if you satisfy the following conditions:
1. Irrespective of your gender, your age must be over 65 years
2. You must not be collecting Canadian Old Age Security pension

9. 3. You must not be living in Canada for twenty years and more since 18 years of your age
4. You must qualify the test of residence in UK
If you currently do not qualify for all the above conditions, you can make another claim later when you think you satisfy all the conditions.
4. State Pension Payment In Israel
UK state Pensions are paid in Israel at the same rate as in UK. If you possess adequate insurance in each country to fulfill the contribution conditions, you can get pension from each of the countries. If you do not encompass adequate insurance, your Israel insurance can be treated as UK insurance.
5. State Pension Payment In Jamaica
UK State Pensioners residing in Jamaica get the same rate of payments as pensioners in UK. Any pensions before this date do not get annual increases. If you are a resident of Jamaica working in UK, same rules are applied. If you possess adequate insurance in each country to fulfill the contribution condition, you can get pension from each of the countries. If you do not encompass adequate insurance, your Jamaican insurance can be treated as UK insurance.
Pension Freeze – Pension For People Living Abroad – Guide
You are entitled to get your state pension when you start living abroad but if you move to certain countries, your pension funds may be frozen – meaning your pension will be frozen at a rate when it was first paid. In other words, your pension will not reflect any rise if you move to certain countries.
There are about 150 countries that are not under social security agreement with UK and thus the principle of “Frozen Pension” applies to these countries. Strangely, as a UK citizen working in a country that is not under social security agreement with UK, and if you visit Jamaica (or any other country that is in agreement) for 2 weeks, you get raised pension for the period you spend in Jamaica.
Understanding all the laws and rules related to UK pension and pension freeze can be difficult for a common citizen; so, here is a simple and concise guide on frozen pension for people living abroad.
State Pensions
The state pensions are based on your National Insurance contributions. As you plan to move abroad temporarily or permanently, here are things to consider about your state pension are:

10. 1. What will happen to your future contributions to the state pension?
2. Will you be able to continue building your UK state pension while working abroad?
If you are moving to EEA State member country, the answers to these questions are simple – you can usually carry on contributing to your NI contributions if you are visiting abroad for a period that is not more than twelve months provided your employer applies with your name. The application informs the social security authorities of the EEA country that your insurance will be carried under the UK plan. The involved countries include:
 Austria
 Belgium
 Bulgaria
 Cyprus
 Czech Republic
 Denmark
 Estonia
 France
 Finland
 Greece
 Germany
 Hungary
 Italy
 Ireland
 Lithuania
 Latvia
 Luxemburg
 Malta
 Netherlands
 Portugal
 Poland
 Romania
 Spain
 Slovakia
 Sweden
 Turkey
The countries under EEA with UK allow reciprocal payments of benefits and taxes to citizens of each state and thus you can continue to make contributions and get associated raises and benefits. However, if you are moving to a non EEA country, a set of different arrangement applies.
Your state pension could be frozen at the initial rate when you first became entitled to the state pension if you move to non EEA country but living abroad in such country does not affect your eligibility to claim back your UK state pension. While moving abroad can boost your income, at the same time, it can reduce your pensions too. The impact of moving to a non EEA country can be too complicated depending on a number of factors.

11. So, if you are planning to live abroad, it is recommended to get your pension plans reviewed to perform as expected and to know how moving abroad will affect your pension scheme. Professional advisers can also suggest you the ways to recover your frozen pension, if any.
How Frozen Pension Can Affect Your Retirement Life
Who doesn’t want to retire in a sunny place with total peace of mind? But if you choose wrong country to retire, you could lose a great amount of money over your retirement life by way of getting your state pension frozen.
The affect of frozen pension on your retirement can be different depending on your unique conditions and many other factors. A lot of people retire abroad to live with their loved ones but unless financial matters are taken into account, the after retirement life can be much more problematic.
State pension is one of the most important things that you must consider while planning your retirement abroad. If you are retiring in a country that is not in reciprocal agreement with UK, you can end up with frozen pension at a rate as it is when you retired abroad. If a reciprocal agreement is present between UK and the country of your settlement, you will continue to get same increments and benefits as you would get if you stayed and retired in UK.
Affects Of Frozen Pension
Frozen pension, on account of your settling in a country not having reciprocal agreement with UK, can result in great complication. For instance with a retirement life of 20 years, your basic state pension could get half in total value in real terms.
There are approximately 150 countries that are out of the reciprocal agreement and Britons working in those countries get their pensions frozen at an initial rate when they left UK to work abroad. Thus while it is rewarding to retire abroad to live with your family and kins however it requires careful planning with professional financial advices.
If at present you are in a state to receive the benefits of the state pension, you will need to get it checked whether you will continue to get those benefits after your retirement abroad. Fortunately, there are certain plans that can help you recover your frozen pension to ensure that you get the money that is actually yours.
A lot of people do not even consider that there may be some funds accumulated in their pension pots. As you plan your retirement, it is important to check your pension plans and getting help form a skilled financial advisers to review your case is recommended. They can examine your finances and pension plans to be executed as expected when you retire.

12. Once you move to a country that is not in reciprocal agreement with UK and your pension is frozen, you must consider that your spending will be in accord with the new country and their currency. Also remember that if you move abroad, you may have to pay for you and your family’s health as you would then no longer be dependent to NHS.
To make most of your retirement plan and minimize the effects of frozen pension on your retirement life, get best legal and financial advice from qualified professionals. At Frozen pension finder, we can help with the sound financial advices including financial plan reviews.
Will Your Pension Be Frozen If You Emigrate?
Today, a lot of people view living and working abroad as an attractive and feasible alternative to working and staying in UK; therefore the emigration rate from UK to other countries continues to rise. For Britons who are weighing up their options of moving abroad, there are a lot of things to consider and checking one's pension schemes should top their list.
Whether or not your pension will be frozen when you emigrate depends on many factors including your circumstances of your emigration and your country of settlement. If you are immigrating to the countries that are in social security agreement with UK, you will be entitled to normal pension benefits and increases as it would, had you stayed back in UK.
However, things may get a little less favorable when you emigrate to countries that are part of commonwealth nations such as Australia, Canada, India, South Africa and New Zealand etc. This also includes former commonwealth nations. All these nations and some others are included in the “Frozen Pension” policy of UK.
Under this policy, the pension pots of the people migrating to non EEA countries are frozen right at the year of their emigration. When the pension is frozen, the UK expats can get their pension but without the annual increase for “cost of living”. At first, it may not be a serious consideration but its overall consequences can be quite big for people living abroad for a long time.
Presently, more than half a million Britons have their pensions locked because they have settled in non EEA countries. A lot of people just leave their pension benefits without even fighting about it. There are some ways to offer relief to people whose pensions are frozen. And that is why it is highly advisable to review the status of your pension schemes for the country you are planning to move for work or settlement.
What To Do In Case of Frozen Pension
To protect the rights of UK citizens who have immigrated to countries that are not part of the social security agreement with UK, the UK government has worked out some schemes that identifies foreign pension funds to allow transfers of UK funds. Such schemes are QROPS

13. (qualifying recognized overseas pension schemes). Under this scheme, the recognized foreign pension schemes can offer same pension benefits to UK expats as it is offered to UK residents.
The QROPS is an attractive offer for UK expats but before you plan to immigrate abroad, you must check if your pensions qualify to benefit from QROPS. It is recommended to seek financial advice from experienced advisers or get your pension reviewed. They will not only review your pension funds and will advice how the country you are considering to move to fares for offering pension benefits.
And if you have already emigrated abroad, experienced financial advisers can help you with ways to recover funds from your frozen pension schemes. It is rightfully your money that lies in the pension funds, don’t let it get drained when there are ways to make most of it. Consult your financial adviser before you immigrate to foreign countries lest your pension gets frozen.
UK Migrants Demand End To Pension Freeze
Pension may not be the most important thing right now for you when you are young! But whether you like it or not, you are getting older and your future, that you think distant, is approaching you rapidly.
You are no different in imagining your retirement to be peaceful without any financial worries. After all, that’s why you contributed hard earned money into your state pension pots during your working years. But wait! Are you planning to retire abroad and not spend your retirement life in the UK?
Ironically, if you have moved or plan to move to Australia, India, New Zealand or any other country, out of over 150 countries, that are not in reciprocal agreement with UK, you cannot expect your retirement to be as you imagine.
The reason being when you migrate from UK to any other country, which is not a part of the social security agreement with UK; your state pension gets frozen at a rate that you were first entitled for. This means, that you will not receive any annual raises in your pension as you would have received had you stayed back in UK or settled in countries that are under reciprocal agreement with UK.
Frozen Pension - The Real Picture
It is estimated that about 95% of pensioners with frozen pension live in various commonwealth countries. And most of them are very old, who have qualified for their pension almost 45 years ago and their pensions are frozen at a very little rate.
Many organizations and people are fighting on behalf of elderly migrants with frozen pension against this inhumane discrimination. Elderly migrants demand end to such pension freeze

14. because they find it totally unfair that their pension is permanently frozen at the date they left UK to work in a non EU country; however if they move to an EU country like Israel or Jamaica, their state pension will continue to increase in sync with the inflation.
Pension freeze is forcing elderly migrants to live their retirement life in poverty or with very little money. Lot of UK pensioners state that these pension policies of the government are actually separating the families. They feel that they are restricted and cannot unite with their families, who have migrated to other countries like Canada, because if they do, their pensions will be frozen. They fear that they will become a financial burden for their children as the pension amount isn’t enough to take care of them.
As a result of these discriminating policies, UK pensioners, retired in commonwealth countries and having frozen pensions, demand an end to such policies, as it has become exceedingly difficult for them to manage the daily living cost in their countries of settlement.
Frozen pension policies are unbelievably unfair especially for aged people. It is that time of their age when they need special care and financial security; frozen pension puts them in a difficult financial condition. Moreover, since they can no longer avail the facilities of NHS, it gets hard to pay the medical expenses which are normally high for elderly people. And hence it is quite vindicated that elderly migrants demand to end pension freeze.
Challenge of Managing Frozen Pension Plans
Traditional pension plans (also known as defined benefit plans) are being frozen by previous employers. It can be quite challenging to manage such frozen pension plans.
There are great challenges if your personal pension plan is frozen, but the good news is that help’s at hand. That said, there are various options and protection plans but generally, employees have limited choices if their previous employer decides to freeze a pension plan.
Here are some of the challenges that you may face with effective thawing solutions for frozen pensions:
Finding Out If It’s A Soft Freeze Or Hard Freeze
Before you take up any steps, you must find out what type of freeze it is because there are more than one ways to freeze a pension. Your pension could either be soft freeze or hard freeze; a soft freeze is where accumulated benefits, which are based on years of service, may be frozen but additional pension benefits could be provided based on increase in participants' compensation.
Hard freezes signify that employees would not get any future benefit. However, the amount that you have already earned is not at risk. So, as soon as you get to know that your pension is frozen

15. or when you plan to change your job (in any country), get your pension plans reviewed by professionals, to make sure that all funds are immediately accessible.
The Risk of Shift
When a pension plan is frozen, employers generally choose defined contribution plans like 457, 401 (k) or 403 (b). The good thing about such plans is that they are portable and this means that you can take your retirement funds with you as/when you change jobs.
However, if you choose to shift your pension funds, you are responsible for managing this process. If not managed properly, pensions can become frozen and tank up, leaving you with less or nothing to show for your years of work. To manage this shift, you will need to do some homework and get the right advice too.
Pension benefits are provided according to years of work, contributions and compensations but you can also expect your investment pot to change as you shift between employers and pension plans. It is better to get professional advice to know about how much will you receive from your chosen investments and also, to maximize each investment. This will help you to plan efficiently for your saving goals and ultimately, your retirement.
Pension Termination
In some worst cases, your employer can terminate the pension scheme. This is not common but if it does happen to you, you have some options. Your pension plan expert can let you know the ways to recover your pension amount in a lump sum or they will guide you to purchase an annuity.
Managing a frozen pension is quite challenging but fortunately, our frozen pension finder services can help you save and make money.
UK Pensions for Foreign Residents
If you are moving to the UK with plans to settle here with or without family, you will be treated just like any other British citizen; but if you are in UK for a short assignment or for a limited time period, thing could get complicated. The effect and complexity level of your financial planning largely depend on your country of residence and nationality.
More Details on Nationals
You will have your state pension system if you are a citizen of an EU or European Economic Area (EEA) member state. You will need to apply your state pension in your EU member state country where you worked last before retirement. As you apply, the information about your employment history will be collected and exchanged by the pension officers within EU member

16. state countries. Based on the collected data, your pension can be calculated. Let’s understand this with an example:
If you worked for 10 years in France, 20 in Germany and 10 in the UK, the pension for 40 years of work will be distributed in accord to respective years of work in each specific EU country. 25% of your pension will come from Britain while the rest will be contributed by French and German sources, based on their respective pension calculation formulae.
The same kind of pension harmonization is applicable to all citizens of selected countries that are under the Social Security Agreement with the UK. Such countries are: [see full list of countries here]
 Israel
 Barbados
 Jamaica
 Bermuda
 Mauritius
 Jersey & Guernsey
 Turkey
 United States Of America
 Philippines
However, Social Security Agreements also exist between the UK, Canada and New Zealand but pension calculation for citizens of these countries is more complicated. The principle of frozen pension also applies for these countries. This means that your UK pension will not see an annual raise if you move to these countries, or if you are coming from these countries to the UK. Your pension will remain frozen effective from the date you left the country.
Social agreements between South Korea, Japan and the UK do not have any provisions to get retirement benefits at all. They basically prevent citizens of the UK who work in foreign countries and people coming from foreign countries from paying pension contributions in more than one country.
Review Your Pension Status Before Moving
If you are moving or planning to relocate to the UK, it is recommended to contact pension specialists to understand how your employment in a foreign country will affect your personal pension plans. If your country has a Social Security Agreement with the UK, they will let you know the exact regulations applicable to your situation; and if there is no agreement, they can explain how your personal finances will be affected. They can also help you invest your personal finances for further benefits.
Pension Review, Unlock Your Frozen Pension
As you change jobs through your working life, there are possibilities that you are leaving behind your occupational pension contributions. These pension pots into which you can no longer make

17. contributions can get locked or frozen. The majority of people think that their money in frozen pension pots is locked until their retirement.
The truth is that such frozen pensions are never really frozen or locked. You can unlock your frozen pension pots at any time, and/or you can reinvest in it to make better use of the money that is yours.
Why Should You Unlock Your Frozen Pension Pots?
It’s surprising that only few people think and take proper action about their pension schemes as they leave or change jobs. A large number of people don’t even realize that they are contributing to a pension plan and never claim the benefits.
As with many other types of financial investment, your pension plan needs to be analyzed and reviewed frequently to ensure it is performing well. Pension reviews and unlocking your frozen pension schemes become even more necessary if you have changed jobs during your professional career.
A professional pension review will not only help you spot frozen pensions but will also analyze their associated running costs - to understand if management and other charges are being deducted from your investment. Even if you only have a single pension scheme that you know is not frozen, a pension review is a good way to be sure that it will meet your financial requirements at the time of your retirement.
Benefits of Unlocking Your Frozen Pension
The word “frozen” is quite confusing and misleading in the context of frozen pensions. There are many ways you can use your money from accounts depending upon the operational terms at the time of opening your pension scheme. For instance, you can invest your pension into other contribution schemes.
While your previous employer, for example, will not necessarily be making any further contributions into the pension pot, other benefit contribution schemes can automatically increase its value after a period, which is normally a year from the day you leave a job up to the date of your retirement.
If you are not interested in reinvesting your money, you can use the recovered money from a pension pot for other, better uses. There are many professional and experienced firms that can assist with your pension review and unlock your frozen pension schemes. The professional pension review advisers are the best people to help you understand how you can get the most value from your investment.
You have worked hard to pay into your pension. Don’t let that hard earned money be drained or made unavailable - get your pension reviewed by experts now.

18. Are You Settling Abroad? Don’t Get Your Pension Frozen
While most UK residents move abroad for better professional opportunities, the last thing to be on their minds is their UK pension that’s left unattended. However, at every turn of your professional career, it’s worth remembering that your pension is one of your most valuable assets after your home or properties. Therefore, it is imperative to be sure that your pension is performing well to leverage its full potential at the time of your retirement.
UK pensioners specifically need to be extremely careful about how their pension frozen schemes are performing - because as UK pensioners settle abroad in countries like Canada, Australia, South Africa or New Zealand, their retirement pension schemes can become frozen or locked. This means that after retirement, their pension in UK will be paid at the same rate that was set at the time of their first entitlement. If you are already a pensioner and settle outside of the UK, your UK pension will be frozen at a rate that was effective on the date you left the UK.
There are some countries that are under relevant reciprocal agreement with the UK; Your UK pension can only be updated, as per the regular UK rate, if you have settled in those countries. UK professionals, who are holding salary pensions as a deferred member with a previous UK employer, can experience diminished pension growth fund gets restricted or worse, a “frozen” pension.
If you are a UK pension holder, the most important thing to keep in mind is - are your pension pots or funds performing as you’d expected? Even if your retirement is a long way off, ignoring your UK pension funds could be very costly.
The Good News
The good news for all UK pension holders is that UK legislation has now given an opportunity to its residents to take control and maximize the pension benefits at the time of their retirement.
As a UK pension holder, you can now transfer your UK pension out of the final salary scheme or pension plans to SIPP (Self Invested Pension Plan) or QROP (Qualifying Recognized Overseas Pension) regulated in UK. Such schemes act as pension wrappers to hold and protect invested funds.
As the majority of countries do not provide increments on the cost of living to expats and therefore, your pension is frozen at its’ initial rate, it is important to review your pension status if you are settled abroad or planning to. Always look at how the country you reside in deals with pension funds.
More than half a million UK pensioners currently have their UK pensions locked because they’re living abroad. But now, whether you have just moved overseas or been living there for several years, it is possible to enhance and recover your UK pension.
Just as you engage a company to unfreeze your frozen pension overseas, ensure that it is independent and experienced to offer you correct solution according to you circumstances.

19. What To Do If Your Pension Is Frozen?
It is possible according to a recent study that more than 5 million people in UK alone could be missing out on their pension funds as they retire due to their pension pots being frozen or locked. It is also estimated that about a quarter of adult professionals in the UK ignore or overlook at least one of their pension schemes due to switching employers during their working life.
Why Do Pensions Get Frozen?
Workplace pension schemes are generally subjected to regular contributions by employers and employees. However, if an employee switches employers, these pension funds may be frozen, lost or locked - where there are no further contributions.
For decades, it was the norm in the UK to pass out of school/college, find a good job and stay in that same job until retirement. However, these days that seldom happens - and in the search for higher wages and a better lifestyle, it's common for people to change jobs multiple times during their career.
So, when you leave a job for a better one, the pension funds of the previous job become inactive or frozen due to no further contributions - from you or from your previous employer. Switching jobs shouldn't affect your access to these pension contributions but in many cases, it does. You can, however, with proper planning and advice, recover your locked pension funds.

20. What To Do If Your Pension Is Frozen?
If you have changed jobs and feel you might have some frozen pension funds, the first thing to do is revisit your pension plan/scheme and talk to your administrator.
The good news about recovering your frozen pension funds in UK is that you don't need to leave it till you retire. There's the option of transferring it to your current pension plan, or you can also reclaim the funds that are rightfully yours.
The pension scheme benefits that are accrued at the time when the pension was frozen are not reduced. In fact, employers often add additional benefits. Overall, pension experts and financial advisors suggest never leaving a frozen pension fund as it will be depleted over time.
There are companies that can track pension funds to help you recover locked and frozen pension funds. So, if you have frozen pension funds, contact a reliable company immediately with details of your previous job or jobs. Before jumping into any of the options available for recovery, it is also recommended that you seek professional advice from Frozen Pension Finder, the best people to explore all the options for you to recover your frozen pension funds.
What is a Frozen Pension and what you need to know about your Frozen Pension Plan?
In Britain, like many other European countries, the ageing population is increasing at a much higher rate than the birth rate. People are also living much longer - while pension predictions don't look so healthy! Nevertheless, as you age and switch jobs, it is vital to be properly informed about your pension funds in preparation for your retirement years.
While current pensions are being funded, planning for the next generation of pensioners remains unclear. To put it simply, people in Britain are getting older and the current pension schemes are incapable of accommodating their financial interests. So, what are your options? How can you secure your retirement years with regular funds and lead a comfortable life - just as you are now?

21. The answer lies in planning well for your pension and recovering any locked or frozen pension funds. You have saved all your working life and earned money for a comfortable existence during your retirement. But for this to happen and to optimize your pension pot, you must know what a frozen pension is - so you can avoid having a frozen pension yourself.
What Is A Frozen Pension?
While you work to earn your salary and contribute towards your retirement funds, it is very likely that you have switched jobs during your working life. When you leave a particular job to work with a new employer, your previous employer will generally stop paying towards your pension scheme. On the other hand, your current employer may continue paying towards your current pension plan. So, your previous pension funds become “frozen” over time, and unless these schemes are activated, your pension funds become depleted and stop accruing benefits.
What Are The Ways Out?
Generally, people are unaware of these frozen pension schemes and don't know ways to recover their funds, which can lead to difficulties post-retirement. Also, very few people know of companies which can help track their lost or frozen pension funds.
While working towards a successful career, better lifestyle and a higher income, it is quite normal to change jobs. And with that, the number of frozen pension funds is on the rise. In fact, many people switch jobs so frequently that they have multiple frozen pension funds with considerably high amounts locked in, and sometimes, forgotten about.

22. If you have locked or frozen pension funds, contact us and our experts at Frozen Pension Finder will help track and recover your money. Everyone deserves a comfortable and peaceful retirement and nothing should come in the way of this.
1- Pension Frequently Asked Questions
Pension! How will I get it? What will be the return? Has my pension become a frozen pension? We are sure there are so many questions that cross your mind as you approach your retirement age. We have tried to answer some of the most common questions before. We will continue to post more such questions for the benefit our our readers and general public at large!
Q1. What happens to contributions paid for the pension?
Pension contributions are generally invested by pension plan trustees through an investment manager or an insurance company. The investments are generally made separately for each employee to easily track the fund share for each individual.
Exactly how the contributions are invested actually depends on many other things including the closeness of an employee to his or her retirement age. For instance, if an employee is close to his age of retirement, investment in debt assets takes importance. A younger employee might get the investment made in more volatile assets (such as equities) with a hope to make significant capital gain before he or she wants to consolidate for their retirement. The assets under pension funds can be build up without any payment of tax towards investment income. Therefore, such contribution investments build up faster than other investment funds that are required to pay the taxes.
Q2. What happens at the time of my retirement?
At the time of your retirement, unless you have frozen pension, the entire accumulated fund in your name is made available to the trustee to offer the benefits. The highest benefits that are allowed to be offered are governed by Revenue Commissioner’s Rule. For employees who are

23. retiring at their normal pension date after completion of regular 20 years of service, the highest lump sum could be 1 ½ times of their salary or it could be calculated according to the most favorable description permitted by the revenue Regulations & scheme rules. The balance amount of available fund must be used to purchase further pensions (for the employee or for their dependents).
If the lump sum has been taken, the amount of available fund is dictated by:
 Total value of the accumulated fund
 The annuity cost at the time of retirement
None of the above can be predicted in advance. For an employee who is far away from retirement age, a reasonable estimate based on assumptions of annuity rates & future fund performance is made. It is critical to keep reviewing these rates regularly to know if the performance is in accord to the assumptions. This allows a change to be made in rate of contributions (if required).
Q3. What if I die during service?
If you die during your service period, your accumulated pension fund will make up for the death benefit offered by the pension plan. The calculations are done based on the scheme terms and conditions. Death benefits can be tax-free lump sum payouts within the permitted limits. Any balance will go for purchasing pensions.
Q4. What if I die past my retirement?
It depends on the option you opted for at the time of your retirement to be offered for your dependents. Many people opt for pensions only for their own lives. Some other people may opt to assure that some part of their capital available at the age of the retirement is used for purchasing additional pensions to be paid to their spouse or dependents on death of the employee after retirement. The fund available can be utilized to customize the benefits to befitting your individual situation.
Q5. What are the advantages and disadvantages of defined contribution pension schemes?
Defined contribution pension schemes put many things into the control of the participants. Participants are allowed to decide about distribution of the benefits – personal pension, dependent are pension, lump sum payouts or increased cost of living.
If an employee leaves the employment early at a young age, defined contribution pension schemes generate generous service leaving benefits for short service period completed by the employee. It's always advisable to have an active pension plan lest it becomes frozen pension.
But, there are risks involved. There are chances that the returns are poor in which case available capital at the retirement time could be less than you expected.

24. The second risk is due to the annuity rates. The money can be invested with open annuity market for best value. However, long term interest rates are lower at the retirement time; they may feed into all-life annuity rates. And thus the annual pension fund for given capital amount can possibly be poor. It is recommended to shop around to get best quotations.
2- Frozen Pension Frequently Asked Questions
Q1. What is meant by “freezing” a pension Plan?
If a company decides to freeze a pension plan, a few or all of the employees covered under that plan cease to earn some or all of plan benefits right from the point of freeze and beyond. Which employees will be affected and what benefits will be ceased depends on the specific plan & situation. Companies generally are free to freeze or modify their pension plans but they are never allowed to take away what the employees have already earned (up to the freeze date); this includes additional benefits as well.
Q2. What are the different types of freezes?
There are several types of pension freezes, resulting in frozen pension, depending on the conditions where some or all employees are allowed to continue accruing their regular benefits offered under the plan. There are various terms adopted to define different types of pension freezes such as partial freeze, hard freeze and soft freeze. It is good to understand the ways your employer freezes the plan.
 Your employer can completely freeze a plan barring the employees from getting all the further benefits of the plan. If an employer freezes a fully funded pension plan like this, all the employees immediately become 100% vested in all the things they have earned till now under the plan; they however lose the power to continue getting any further benefits.
 Otherwise, a pension freeze can selectively cease the benefits for few employees/participants but not for all. This type of freeze is normally applied when employer does not allow new employees or participants to enroll for the plan, but allows the continuance of the plan for existing participants.
 And finally, another type of freeze may cease participants from receiving pension credit for further working years in the plan but permits the benefits to be calculated over their salary at the time of their leaving the plan rather than on the day of freeze.
Q3. How can the special early retirement benefits be affected by pension freeze?
In case a pension plans promises that participants with specific age and service requirement will get unreduced or partly unreduced pension for early retirement, the amount of this special early retirement pension earned by the employee as on the day of freeze will remain protected only if the employees in later years fulfill the requirements stated for those benefits. It is to be noted

25. here that some pension plans only offer such protection only if this special early retirement pension is given or paid to the employees as lifetime annuity and not as lump sum payout.
Q4. What is the difference between freeze and termination?
When a company decides to freeze a pension plan, its participants may cease to earn benefits while the pension plan continues to be operational. It remains insured by “Federal Pension Insurance Corporation” and there are chances that the plan might be unfrozen in future.
But, when a pension plan is terminated, it totally stops and ceases all its operations. If there are underfunded plans, a few or all of the assured benefits will most likely be paid by the “Federal Pension Insurance Corporation” program. And in case the plan is overfunded, it is turned over to the insurance company that will get over payments of the benefits.
Q5. Why are plans frozen by employers?
Companies provide different reasons for freezing pension plans. Some financially strong companies state that freezing is essential to be spirited with other companies that do not offer pension plans. Some other companies say pension freeze are essential to pay towards increasing costs of health insurances. Many other companies indicate towards modifications in accounting rules, pending court cases or the volatility of rate of interest. A few other companies also claim that their pension participants do not value it much and prefer savings plans. No matter what reasons are provided by the companies, the harsh truth is that pension freeze save them money and due to accounting rules, they are also allowed to project significant growth in operating income in their reports to shareholders.
Employers who are not financially strong also go for freezing their pension plans so as to lessen the expenses. At times, they are under pressure of their creditors to do so and sometimes to protect their bankruptcy. An employer may also freeze a plan if it acquires another plan and it is too difficult to merge both the plans together. Normally, the companies that decide to freeze defined benefit plans, offers superior savings plan to the participants.
Q6. Are companies allowed to freeze the pension plans?
According to the current law, companies are allowed to modify, freeze or eliminate the pension plans altogether. In such a case, the benefits already earned by an employee are protected.
Q7. Who can be affected by a pension freeze?
Since all the benefits earned by an employee before the day of freeze are protected by the law, the employees or retirees who leave their employment before implementation of freeze will not lose the benefits. In simple words, pension freeze can only affect the employees for whom the employer’s promise to continue the earning of benefits under a plan is withdrawn.