Frozen Pension, Dormant Or Paid Up Pension
The UK government is currently looking at making it simpler for employees to take their pensions with them as they switch one job to another. A clear system is expected to be developed in which individuals with small pension funds can carry forward their pension plan when they switch jobs. But these are still in the process and yet to be implemented; the current pension rules does not allow individuals to combine their pension funds as they move from job to job during their working years. These results in frozen pension pots or lost money. Many may end up with multiple pension funds stuck in different pension plans.