Updated: November 07, 2019

Frozen Pensions Over 55

Over 55 with a frozen pension? It's not too late to cash it in! Find out what your options are in our guide

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Tony Stevens

Author: Tony Stevens - Finance Expert

Updated: November 07, 2019

We have been receiving a high number of enquiries from customers wanting to know what options they have to unlock a frozen pension before 55, while other customers ask ‘can I cash in my frozen pension at 55’? Some people just want to know how they can find a frozen pension.

Fortunately, the advisors we work with are experts when it comes to frozen pensions, more accurately called ‘dormant pensions’.

We have put together a dormant pension guide on what is possible both before and after reaching 55 years of age.

What are my frozen pension options at 55 and over?

At the age of 55 and over you have all the possible options available to you for your frozen pension, you could:

Transfer them into your current personal pension plan

If you already have an active personal pension plan you are able to transfer any frozen pensions you may have into the active pension.

Set up a new personal pension including the frozen plans

You are able to have as many personal pension plans as you like, so an option could be setting up a brand new plan to transfer as many frozen pensions into as you want. If a new plan is something you are considering, seek advice from one of the dormant pension specialists we work with, who will be able to give you the best advice for your circumstances.

Buy an annuity

An annuity provides a guaranteed income for either a set number of years or for the rest of your life – whichever you choose. Remember you are able to take a 25% lump-sum tax-free and then reinvest the remaining 75% with an annuity for a monthly income.

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Can I cash in my frozen pension at 55?

Yes, if your dormant pension has the Pension Freedom provisions. Typically, pensions taken out before 2015 don’t have this provision so it may be necessary to transfer to one that does.

In addition, older pensions only allow the option to buy an annuity at retirement, so there may be no access allowed before then and your options are limited.

You can, however, transfer the pension at retirement. It is advisable to get an advisor to check your existing pensions to see if they have access to Pension Freedoms. At the same time, they can check the pension’s performance, as this also may be a driver for transferring if it is performing poorly.

To get the best advice for your circumstances speak with a pensions expert, like the ones we work with. Call 0808 189 0463 or make an enquiry.

What are my frozen pension options under 55?

If you’re looking at releasing a frozen pension before 55 then you have a number of options open to you including:

Can I cash in my frozen pension under 55?

In reality yes. Many pension providers could allow you to unlock cash from a frozen pension before 55

Although this could well be a possibility, it could also be costly, as you wouldn’t be entitled to any tax breaks, and would be hit with a significant tax bill from HMRC, of up to 55% and to add insult to injury, there is a good chance you would get some hefty admin charges from the provider for releasing the frozen pension before age 55.

If this is something you are considering it would be prudent to speak with an expert pensions advisor, like the ones we work with to get the best advice for your circumstances.

Speak to a dormant pensions expert

If you have questions about frozen pensions or your options pre or post age 55 and want to speak to an expert for the right advice, call Online Money Advisor today on 0808 189 0463 or make an enquiry. The advice they give is free and without obligation.

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We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in pensions Ask us a question and we'll get the best expert to help.

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Tony Stevens

Tony Stevens

Finance Expert

About the author

Tony has worked in a vastly diverse array of areas in the pensions industry for over 20 years. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events.

Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been “Hope for the best, but plan for the worst”, and believes that the biggest impact that an adviser can have on a client’s life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they want their retirement to be.

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*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

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