Our mission to promote pension protection
Many consumers in the UK don't realise that FSCS can pay compensation for pensions if a provider goes out of business. We've been working with the industry to boost awareness and help consumers make the right financial decisions for them.
We know from our own research that only a small proportion of consumers know that FSCS covers pensions, and that we may be able to compensate them if their provider goes out of business. We want to change that.
We've been working with pensions providers to help raise awareness of FSCS among their customers. We started by establishing a working group, which included some of the UK's largest providers. Together we explored how we could best inform consumers about the protection available for pensions products before they made the decision to take one out, and also make sure existing customers were aware of our protection.
FSCS protected badge
We agreed that expanding our FSCS protected badge was a wise move. We know the badge is familiar to consumers as it's used across all banks, building societies and credit unions - displayed in branches and online. We also drew up guidance to accompany it, so that it would be clear to pensions providers where and how to use the badge, so there would be a consistent approach.
All firms are already responsible for letting their customers know about the protection their products have. Using the badge doesn't change that, it just aims to make it easier for consumers to understand who protects their pension and make use of the fact that the 'FSCS protected' badge is already familiar to many. Combined with the questions we've made available this year, it should give consumers more confidence when they're choosing a new pension, or transferring an existing one.
Early badge adopters
Scottish Widows, Standard Life and PensionBee are now proudly displaying the badge online, with others due to follow soon. There's also guidance available for incorporating the badge in mobile apps and other literature, such as annual statements and information packs.
Working with the wider financial services industry is key to raising awareness of the FSCS protection available to consumers. Although the emphasis is currently on pensions providers, we hope to take this further in the future.
If you would like to find out more about what we're doing, or would like to get involved, you can get in touch with our Stakeholder Relations Team by email at firstname.lastname@example.org.