Pensions

Pension provider failures

Generally, FSCS can protect pensions that are provided by UK-regulated insurers, as long as they qualify as ‘contracts of long-term insurance’. A common example is an annuity, where you exchange the cash in your pension for a regular income from an insurance company.

Where FSCS can pay compensation, we will cover the pension at 100% with no upper cap. We cannot confirm whether individual plans with specific providers would be classed as “contracts of long-term insurance’” or not – you would need to speak to your provider directly. 

We can’t protect Occupational Pension Schemes (OPS) if they fail. These may be protected by the Pension Protection Fund.

Pension investment failures

Where an investment was held within a personal pension (e.g. a SIPP) or a Defined Contributions OPS, and the UK-regulated provider of the investment fails, FSCS may be able to pay compensation up to £85,000 per pension scheme member.

Where the failed investment was held within a Defined Benefits OPS, the pension trustee(s) may be able to make a single claim for compensation of up to £85,000.

Pension advice

If a UK-regulated adviser has given bad advice concerning a pension (e.g. to transfer it), FSCS may be able to pay compensation up to £85,000. If the adviser is still trading, you can complain to the Financial Ombudsman Service.  You may wish to seek guidance from the Money & Pensions Service, or independent financial advice, before moving your pension.

 

Pensions

Pensions

If your pension provider fails
  • 100% of your claim, with no upper limit.

 

If your SIPP operator fails
  • up to £85,000 per eligible person, per firm.

 

Bad pension advice

If you’ve received bad advice in relation to your pension, you could be eligible to claim compensation.

  • up to £85,000 per eligible person, per firm.

 

If your pension provider fails
  • 100% of your claim, with no upper limit.

 

If your SIPP operator fails
  • up to £50,000 per eligible person, per firm.

 

Bad pension advice

If you’ve received bad advice in relation to your pension, you could be eligible to claim compensation.

  • up to £50,000 per eligible person, per firm.

 

If your pension provider fails
  • 90% of your claim, with no upper limit.

 

If your SIPP operator fails
  • up to £50,000 per eligible person, per firm.

 

Bad pension advice

If you’ve received bad advice in relation to your pension, you could be eligible to claim compensation.

  • up to £50,000 per eligible person, per firm.

 

How long will the pension claim process take?

Between 3 and 6 months

Once we’ve got your completed application and all the associated evidence we’ll aim to make a decision on your claim in between three and six months. If it’s a complex claim it may take longer.