Pensions (Retirement savings)

FSCS protects consumers when an authorised financial services firm goes bust. This means FSCS can pay compensation to consumers if a financial services firm is unable, or likely to be unable, to pay claims against it. We refer to this as being in default.

FSCS compensation arrangements for different financial services.

There are limits to the protection FSCS provides which vary by financial product. The FSCS protects:

  • deposits up to £85,000 per person per firm;
  • 100% of the claim with no upper limit for claims relating to long term insurance policies (such as pensions and life assurance); and
  • investments up to a limit of £50,000 per person per firm. These include for claims relating from bad investment advice, poor investment management or misrepresentation.

So the compensation limit for retirement savings will depend on the exact nature of the product (or products) you buy.

Before we can consider a claim for compensation we must be satisfied that the firm your claim is against was authorised by the PRA or the FCA and has been declared in default.

Am I eligible?

You may also find the Questions and Answers in our Pensions (Retirement savings) section helpful.

If you need to make a claim then please contact us, as there are a number of different categories under which your pension claim might fall.

FSCS compensation for pensions. 

Compensation limits for pensions.

For more information on your pensions options, visit the Pensions Advisory Service, a free and impartial service set up by the government.  


The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).


The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Jargon Buster

  • Deposits

    money placed in a bank or similar institution to earn interest or for safe-keeping.
  • Eligible

    qualifying for compensation under Scheme rules.
  • FCA

    The Financial Conduct Authority is the UK's regulator for the financial services industry. 

  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.
  • Investment

    a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up).