Pension Protection Checker (2024)

Maybe you’re thinking about taking out a pension. Our main pensions page includes information on how we protect different types of pension products - as our protection does vary. It can be difficult to understand at first as pensions are complicated, but if you're stuck, you can contact us for help.

We can't give you advice on your choices, but we can help you with questions about our protection and compensation limits.

Thinking about getting financial advice?

If you’re going to seek financial advice, and the adviser is authorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of the bad advice they gave you, we may be able to compensate you up to £85,000.

We also have some useful questions(pdf 215KB) that you can ask any provider if you’re considering taking out a pension with them. They’ll help you find out if FSCS can protect your money and, if so, how much. This is an important part of any financial decision.

If you need general advice about any money matters, including pensions, visit MoneyHelper– its support and guidance are free.

Answer - Final salary pension schemes are generally covered by the Pension Protection Fund.

Your final salary pension is known as a 'defined benefit' scheme. These are protected by the Pension Protection Fund. But if you're thinking of changing your pension, your new pension may not be protected. It’s up to you to find out what protection your pension has. To find out, follow the ‘Check’ steps below.

If you’re going to seek financial advice, and the adviser is authorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of the bad advice they gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

If you're considering getting some financial advice about your pension, search theFinancial Conduct Authority (FCA) registertocheck that it authorises yourfinancial advisor.

Step 2

If you're considering switching your pension or taking out a new one, search theFinancial Conduct Authority (FCA) registertocheck that it authorises your newpension provider.

Step 3

Use ourkey questions(pdf 215KB) toask any pension providerabout your FSCS protection.

Answer - Defined contribution work pension schemes are structured in different ways, so you’ll need to check whether you’re FSCS protected or not.

Your defined contribution workplace pension could be set up to be trust-based, contract-based, or group-based. FSCS protection would depend on how your particular scheme was set up.It’s up to youto find out what protection your pension has.

VisitMoneyHelperto learn more about this type of pension.

If you've already retired, and used the funds from a defined contribution workplace pension scheme to buyan annuity from a UK-regulated provider, FSCS protects this at 100%.

If you’re going to seek financial advice, and the adviser isauthorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of thebad advicethey gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

Ask your employerabout your particular defined contribution workplace pension scheme to find out if it’s FSCS protected. Or if you know the pension provider, ask them if your pension is FSCS protected.

Step 3

Use ourkey questions(pdf 215KB) toask any pension providerabout your FSCS protection.

Answer - If your FCA-regulated SIPP provider fails, funds are generally ring-fenced. Shortfalls may be FSCS protected up to £85,000.

If your SIPP provider fails, the funds are generally safe as they're ring-fenced and can't be used to pay creditors. Shortfalls in assets or money may be covered by FSCS up to £85,000.

If a firm that provided a product within the SIPP failed, FSCS may still be able to protect your money. The level of protection depends on the type of product.Investments,insurance products, orcash in a deposit accountall have different protection levels.

Individual SIPPs vary, andit’s up to youto find out what protection your pension has. To find out, follow the ‘Check’ steps below.

If you’re going to seekfinancial advice, and the adviser isauthorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of thebad advicethey gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

If you're considering getting some financial advice about your pension, search theFinancial Conduct Authority (FCA) registertocheck that it authorises yourfinancial advisor.

Step 2

If you're considering switching your pension or taking out a new one, search theFinancial Conduct Authority (FCA) registertocheck that it authorises your newpension provider.

Step 3

Use ourkey questions(pdf 215KB) toask any pension providerabout your FSCS protection.

Answer - FSCS protection for your type of personal pension depends on the type of its investments.

If your personal pension provider fails, the funds are generally safe as they're ring-fenced and can't be used to pay creditors. Shortfalls in assets or money may be covered by FSCS up to £85,000.

If a firm that provided a product within the personal pension failed, FSCS may still be able to protect your money. The level of protection depends on the type of product.Investments,insurance products, orcash in a deposit accountall have different protection levels. If your pension is structured as a 'contract of long-term insurance', protection may be 100%.

Individual personal pensions vary, andit’s up to youto find out what protection your pension has. To find out, follow the ‘Check’ steps below.

If you’re going to seekfinancial advice, and the adviser isauthorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of thebad advicethey gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

If you're considering getting some financial advice about your pension, search theFinancial Conduct Authority (FCA) registertocheck that it authorises yourfinancial advisor.

Step 2

If you're considering switching your pension or taking out a new one, search theFinancial Conduct Authority (FCA) registertocheck that it authorises your newpension provider.

Step 3

Use ourkey questions(pdf 215KB) toask any pension providerabout your FSCS protection.

Answer - Without knowing more, we can't tell you what protection you have.

You'll need to do some research using the organisations below.

If you’re going to seekfinancial advice, and the adviser isauthorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of thebad advicethey gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

Go toMoneyHelperand read up on the different types of pensions available. Its advice is free and impartial.

Step 2

Find out from your pension providerwhat type of pension you have.

Step 3

Come back and checkyour FSCS protection once you know more about your pension.

Answer - Good news. Our annuity protection is 100% with no upper limit.

Our annuity protection is 100% with no upper limit. Your annuity must be with aPRA-authorised insurer, as shown on theFCA register,and it must be classed as a ‘contract of long-term insurance’ to be eligible for FSCS protection.

If you’re unsure if your annuity is a ‘contract of long-term insurance’, ask your provider. Use ourkey questions(pdf 215KB) to help.It’s up to youto find out what protection your pension has.

If you’re going to seekfinancial advice, and the adviser isauthorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of thebad advicethey gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

Check your annuityis a 'contract of long-term insurance'.

Step 2

SearchtheFinancial Conduct Authority (FCA) registerto make sure your provider is authorised in the UK.

Step 3

Use ourkey questions(pdf 215KB) toask any pension providerabout your FSCS protection.

Answer - Depending on how your investments are structured, you have varying levels of FSCS protection.

If your lump sum is saved as cash with aUK bank, building society,orcredit union- for example in a normal savings account - you're protected up to £85,000. Remember that the limit applies to each banking licence, and some banks share a licence across different brands. This will affect how much of your money we can protect. Use ourbank and savings protection checkerto check your accounts are covered.

If you’ve re-invested some of your pension pot to provide an income (known as ‘pension drawdown’), then FSCS may protect your money under ourinvestment cover.

This type of product doesn’t provide a guaranteed income, and FSCS can’t protect you if your investments simply don’t perform as you'd hoped. We can only step in if the provider has failed and they acted negligently in some way.

If you’re going to seekfinancial advice, and the adviser isauthorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of thebad advicethey gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

If you're considering getting some financial advice about your pension, search theFinancial Conduct Authority (FCA) registertocheck that it authorises yourfinancial advisor.

Step 2

If you're considering switching your pension or taking out a new one, search theFinancial Conduct Authority (FCA) registertocheck that it authorises your newpension provider.

Step 3

Use ourkey questions(pdf 215KB) toask any pension providerabout your FSCS protection.

Answer - Depending on how your investments are structured, you have varying levels of FSCS protection.

Our annuity protection is 100% with no upper limit. Your annuity must be with aPRA-authorised insurer, as shown on theFCA register,and it must be a ‘contract of long-term insurance’ to be eligible for FSCS protection. If you’re unsure if your annuity is a ‘contract of long-term insurance’, ask your provider. Use ourkey questions(pdf 215KB) to help.

Many people use their lump sum to pay off their mortgage or treat themselves to a dream holiday. If instead, you choose to invest or save it, you may be protected by ourinvestmentsordepositscover, up to £85,000.

If you’re going to seekfinancial advice, and the adviser isauthorised by the FCA, we can protect you if things go wrong. This means if the adviser goes out of business and you’ve lost money because of thebad advicethey gave you, we may be able to compensate you up to £85,000.

Thinking about getting financial advice?

Step 1

If you're considering getting some financial advice about your pension, search theFinancial Conduct Authority (FCA) registertocheck that it authorises yourfinancial advisor.

Step 2

If you're considering switching your pension or taking out a new one, search theFinancial Conduct Authority (FCA) registertocheck that it authorises your newpension provider.

Step 3

Use ourkey questions(pdf 215KB) toask any pension providerabout your FSCS protection.

Pension Protection Checker (2024)

FAQs

Is there a chance I could lose my pension? ›

A number of situations could put your pension at risk, including underfunding, mismanagement, bankruptcy, and legal exemptions. Laws exist to protect you in such circumstances, but some laws provide better protection than others.

Can you transfer out of the pension protection fund? ›

Instead, an 'assessment period' will begin, which typically lasts between 18 months and two years. During this period, the trustees of your existing scheme will deal with any queries and make any pension payments. But you can't make any more contributions or transfer out of the scheme.

What determines how much your pension will be? ›

Normally, this is the average of your five highest consecutive years of salary used to calculate your pension benefits, taken from the employment information reported by your employer(s). If you have periods of part-time employment being considered in determining your HAS, the annualized salary will be used.

How does a pension check work? ›

After employees retire, they receive monthly benefits from the plan, based on a percentage of their average salary over their last few years of employment. The formula also takes into account how many years they worked for that company. Employers, and sometimes employees, contribute to fund those benefits.

How secure is my pension? ›

Your pension is typically insured by the Pension Benefit Guaranty Corporation (PBGC). In the event your company declares bankruptcy or can't make its payments, this federal agency guarantees your payments up to a certain amount. Your pension payments are also protected against certain creditor claims.

Are pensions guaranteed for life? ›

With a lump sum, there is no guarantee the money will last a lifetime. A regular pension payment will last until you die.

Can I transfer my pension to my bank account? ›

For most pension schemes, it is not possible to access your pension until you are at least 55. You can, however, transfer to a new provider at any time. But if you're 55 or older, you can move your pension into your bank account. Even then, though, it is unlikely to be a good idea to take all of your pension in one go.

Can I transfer my pension to cash? ›

If your pension is transferred as cash, this means your provider will sell your pension investments, and transfer the cash amount. You will not be invested during the transfer, so you will not make losses or gains. You can buy investments once the transfer is complete.

How long does it take to receive a lump sum pension? ›

How long does it take to receive a pension lump sum? Usually it will take around four to five weeks from the date of your request for your pension provider to release your lump sum.

What is the 70% rule for pension? ›

How much pension do you need to live comfortably? For a quick estimate, try the '50-70' rule. This suggests that you should aim for an annual income that is between 50% and 70% of your working income.

What is the average pension check? ›

Retirement Income Varies Widely By State
StateAverage Retirement Income
California$34,737
Colorado$32,379
Connecticut$32,052
Delaware$31,283
47 more rows
Oct 30, 2023

How many years does a pension last? ›

Pension benefits are typically a fixed monthly payment in retirement that is guaranteed for life. Some pension benefits grow with inflation. Other pension benefits can be passed on to a spouse or dependent. But pensions aren't the only financial route to guaranteed lifetime income after you retire.

Can I collect my pension and Social Security at the same time? ›

Can you collect Social Security and a pension at the same time? You can retire with Social Security and a pension at the same time, but the Social Security Administration (SSA) might reduce your Social Security benefit if your pension is from a job at which you did not pay Social Security taxes on your wages.

Do pensions affect Social Security? ›

Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. You may need to pay income tax, but you do not pay Social Security taxes.

Do you have to pay taxes on a pension check? ›

Taxes on Pension Income

You will owe federal income tax at your regular rate as you receive the money from pension annuities and periodic pension payments. But if you take a direct lump-sum payout from your pension instead, you must pay the total tax due when you file your return for the year you receive the money.

How much money can I have before I lose my pension? ›

From 20 March 2024 the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $301,750 – for homeowner couples the number is $451,500. The numbers for non-homeowners are $543,750 and $693,500 respectively.

Can you lose your pension if you lose your job? ›

Keep in mind that a pension, unlike an individual retirement plan account — like a 401(k) — doesn't transfer to a new job. So, the difficult truth is that it's possible you could lose all or some of your employer's contributions to your pension if you're laid off before you become vested.

Can all pensions be cashed out? ›

Whether you're eligible to cash out your pension will depend on the terms of your plan and how long you've been enrolled in it. If you are in fact eligible, you may have the option to take a lump sum distribution and roll it over into an IRA to defer taxes on the money.

Do I lose pension if I quit? ›

Vested benefits refer to the portion of a pension plan that an employee is entitled to receive even if they leave their job before retirement age. In essence, it's the money an employee has earned that is theirs to keep, regardless of their employment status.

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