Frozen pensions are pensions that have become inaccessible to its owners because they have started to live in certain overseas countries. Not all countries are affected by the freezing, however. If you are a UK pensioner and have decided to retire to say, the United States, Germany, or the Philippines, rest assured your pensions would be indexed annually and your full pension would be paid. If you plan to retire in Canada, Japan, or Australia on the other hand, there is no guarantee that you will get the full pension amount. After all, if a pension is frozen, its real value will decline every year down to 50% or less.

There are also some instances where employers freeze pension plans in an attempt to “de-risk” the traditionally defined-benefit pension plan. Why? By de-risking the plan, employers would be able to improve their financial statements, increase cash flow, and reduce costs initially operating on defined-benefit plans.

So what is there to do when your pension is frozen?

Luckily, when your pensions are frozen because of an employer, there are a lot of things you could do to avoid losing your money. You could revisit your plan and update it according to your specific needs. If at all possible, consider transferring pension plans. Talk to financial advisers (try Tim Carroll UK Pensions) and inform them about your concerns.

Another thing to do when your pension plan is frozen is to increase your savings. With a frozen pension account, it is possible to lose all your retirement funds even before you get to access them, so your best bet would be to start saving up some more.

Pensioners who have frozen accounts will still receive some benefits in the form of their previous contributions. Having a frozen pension account just means that they won’t be earning any more benefits in the future, but their previous earnings are still intact.

For anyone looking to transfer pension schemes due to relocation or immigration, do not hesitate to contact financial advisers such as Tim Carroll UK Pensions Transfer LLC who provide services such as extensive research into clients’ existing pensions.