I have a ‘frozen’ personal pension that is not performing or I do not get any feedback from the pension provider – what can I do?

Though there have been numerous schemes that claim to allow you to pull your money out of ‘onshore’ pension schemes early (or move your pension overseas), to date none have managed to achieve this with the full authorization of the Inland Revenue. Moreover, it is unlikely to happen either since the Revenue would lose the received tax relief you received on the pension contributions. Additionally, the Inland Revenue is looking forward to retaining the majority of your pension fund on your death so they will want to keep it under their control.

Even though it is not (legally) possible to cash in your frozen pension now, you can transfer it to a lower charging, actively managed fund. The first stage in this process is to perform a pension transfer analysis. A pension transfer analysis is a free, no obligation, and impartial (regulated by the pensions office) service that informs you of the value of your pension and whether it is in your interests to move it to another pension provider. In 9 out 10 cases it is in your favour for one or more of the following reasons:

• It allows you to bring down the age when you can receive the pension to earliest age – currently 50

• It ‘unfreezes’ the pension and allows the plan to be actively managed again to ensure maximum growth

• It allows you to increase your tax-free allowance to the maximum – 25% of the funds value

• It allows you to transfer your pension funds into a policy with lower fees and charges – again increasing net growth

• It moves your pension funds away from a old employer – UK corporate schemes are getting a lot of adverse publicity at present

If it is in your favour to transfer your pension, the only additional step is to sign the transfer request and any release papers the existing pension provider may require. In the new pension plan, you have the option to choose from a selection of cash, bond, equity and property funds and these funds can be monitored and switched in line with prevailing market conditions

Additionally, if the value of your pension is over £100,000 we can transfer the funds into a Self Invested Personal Pension Plan (SIPP). SIPP’s have all the advantages mentioned above plus:

• You can invest in asset approved by the Inland Revenue; this includes equity funds, individual stocks and shares and property

• On your demise, your estate receives the remaining fund value – not the Inland Revenue as with a regular pension

• In certain professions, you can take the tax-free lump sum before the age of 50 – with Inland Revenue approval

Candour Consultancy works closely with the leading providers of pension transfer plans and SIPPS. Candour can provide a UK Pensions Office approved analysis of pension transfer options free of charge and without obligation.