I have received a letter from an old pension company telling me they are merging with another company and are offering me the opportunity to receive a one off payment from my old frozen pension.(last time I paid into this pension was fifteen years ago, and had forgot all about it)
I was wondering would this be treated as a windfall or should leave it until I retire ???
I would leave it until you retire golfkpy or until your IVA is over. Not only because of the windfall element but also that they may be offering you cash as incentive to change the type of pension it currently is. Unless you are nearing early or full retirement and have a small fund then they cannot give you the full amount as cash. This incentive was offered to me as I am in a deferred (frozen) 21 year final salary scheme and a cash sum was offered BUT it would then change into a DC scheme which is reliant on the markets and you will not get nowhere near as much on retirement due to all the guarantees and annual increases lost. It may be completely a good gesture but check the reasons as when cash is involved, there is always more than meets the eye.
