If you've worked multiple jobs over the years, there's a good chance you’ve built up pension pots with previous employers. Many people forget about these old pensions or simply don’t realise they need to take action to manage them. These are often referred to as “frozen pensions”, though technically, they’re better described as dormant or preserved pensions.
A frozen pension is one that you no longer actively pay into, usually because you’ve left the employer providing it. While no new contributions are being made, the funds are still invested and may continue to grow or incur charges.
We’ll explore what a frozen Defined Benefit pension plan is, the options available to you, and why it’s important to track and manage any old workplace pensions.
To get started, watch this short video from our CEO and Financial Advisor, Dominic James Murray, where he explains frozen Defined Benefit pension plans in more detail:
What Is a Frozen Pension?
A frozen pension is a previous workplace pension that you are no longer contributing to. If you've changed jobs and haven't considered combining your pensions, it is likely that you have a few frozen pensions. Some of these inactive pensions may be subject to hefty fees, so it's worth looking into them.
A 2017 CIPP research study found up to one fifth of British adults have lost track of multiple frozen pensions. With people changing jobs more frequently nowadays, it's more important than ever to keep track of your pension savings. You'll not only have the peace of mind knowing you've saved enough for a comfortable retirement, but you'll also be able to see how your savings are performing and what fees you're being charged.
There are several things you can do to get your frozen pensions back on track.
The first step is to locate all your previous workplace pensions. If you don't have the contact information for your old pension providers, there are several ways to find them.
A good starting point is by contacting the Human Resources department at your former employer. They should be able to provide you with information about the company's pension plans. It will then be your responsibility to contact the provider directly to determine the value of your pension.
If you have several frozen pensions, using the government's free Pension Tracing Service to locate them may save you time. This is a searchable database where you can enter the name of your former employer or pension provider to find the information you need. This service is available both online and by phone.
What Happens With a Frozen Defined Benefit Pension?
A Final Salary, also known as a Defined Benefit (DB) pension, is sometimes mistakenly referred to as a frozen pension. In reality, it's not frozen at all. Even after you leave the employer, the benefits you’ve built up continue to increase each year until you reach retirement age. These increases are often linked to inflation or set out in your scheme’s rules.
That said, it’s essential to keep track of your DB pension. Store all documentation, including annual benefit statements and scheme communications, in a secure place. This ensures that when you reach retirement age, or in the unfortunate event of your death, the benefits can be easily accessed by you or your beneficiaries.
It’s important to understand that no pension is truly frozen. Whether the pension is still invested and fluctuates with the market, or you’re a deferred member receiving annual increases, the value and status of your pension are always subject to change. Staying informed is key to making the most of your pension when the time comes.
What Can You Do With a Frozen Pension?
There are several things you can do with a frozen pension once you've found it.
- Transfer your pension: If you have multiple frozen pensions, you can combine them all and transfer them into your current pension.
- Set up a new pension: Personal pensions are separate from workplace pensions and can be set up by anyone. With a personal pension, you can select your pension provider and the scheme that best meets your needs.
- Invest in an annuity: Investing in an annuity will help you secure a guaranteed income for a set period of time, whether it's a few years or the rest of your life. You can purchase an annuity from the age of 55.
- Drawdown: The main alternative to purchasing an annuity is a drawdown, which allows you to keep your pension invested until you need it. To begin using a drawdown, you must be 55 or older.
Can I Move a ‘Frozen Pension’?
You should be able to move frozen pensions into a more suitable policy depending on the type of pension. If you move, there may be restrictions and exit fees imposed on your pension, so it's always a good idea to get a full breakdown of the terms of the pension policy.
If you worked in the public sector and received a Defined Benefit pension as part of your salary, these are usually unfunded schemes, and you may be unable to transfer these pensions.
Does a ‘Frozen Pension’ Still Grow?
The short answer is most likely ‘yes' – your frozen pension should continue to grow. However, because neither you nor your former employer contributed to the pension, the rate of growth may be reduced. Provider fees, market conditions, and poor investments may all have an impact on pension performance, reducing the retirement funds you could be enjoying. In extreme cases, the charges could completely deplete the pension fund.
Why It Matters, And What I Should Do Next
As you can see, there are several reasons why companies may choose to freeze a Defined Benefit pension scheme. These decisions are typically driven by cost control, risk reduction, and corporate restructuring. But while freezing a plan may make sense for the employer, it creates uncertainty and complexity for the member.
Once a DB pension is frozen, no further benefits accrue. The existing benefits remain subject to the same risks, regulations, and administrative obligations. You may still receive inflation-linked increases, but without proper oversight, fees, investment performance, and market conditions could impact your long-term retirement income.
Understanding your options is crucial. Should you leave your pension as it is, transfer it, or consider consolidating it into a more suitable scheme? The right answer depends entirely on your personal circumstances, retirement goals, and the terms of your pension.
Ready to Take Control of Your Frozen Pension?
Whether you’ve just found an old Defined Benefit pension or are unsure what to do with multiple frozen pots, professional advice can help you make a confident, informed decision. At Cameron James, we specialise in UK pension advice, including Defined Benefit and international transfers.
Our FCA-regulated advisers will review your pension scheme, explain your options in plain English, and help you build a clear plan for your retirement.
✅ Get clarity on your pension options
✅ Avoid unnecessary charges or poor performance
✅ Make your frozen pension work for your future
Book your free initial consultation today and take the first step toward smarter pension planning. We’re here to help.