Information on Deferred Pensions

Deferred pensions is a term mainly used to describe members of occupational schemes, often defined benefit schemes, who no longer work for that particular employer.


The term 'frozen pensions' may also be used, but the value of deferred pensions is not frozen and will continue to benefit from investment returns or, if it is a final salary scheme, increases in 'notional salary' until retirement. Deferred pension may also be used to describe when someone defers drawing their pension at their normal retirement age. In the UK it is also possible to defer your state pension rather than accessing payments at the state pension age.

It may be that people have built up a pension pot in a deferred pension which is forgotten about until retirement.It is important to review any plans you have to ensure that the type of scheme you have is appropriate to your needs.

You may be able to bring together any pension investments you have in a single scheme, such as a Self Invested Personal Pension (SIPP), or transfer to another provider.A SIPP can allow you to bring together you pension savings and control how those investments are made. For advice on your options click on the link below:

Pension Advice