What happens if my pension provider goes bust?

When it comes to something as precious as our pension, it can be devastating if something happens to it – especially if it’s completely out of our control.

Fortunately, there are a number of government regulations in place to make sure that if the worst should happen, your pension remains a protected commodity.

Our employers will be responsible for contributing to our pension and whether you’re on a defined benefit pension scheme or a defined contribution benefit scheme, you need to be aware of your options in the scary event that your employer or employers pension becomes insolvent.

Read on to find out more about what to do if your pension provider goes bust and what retirement funds you can get a return on.

Let’s see how these protections work so your journey to retirement is a bit smoother.

This guide covers:

• What happens to my pension if my provider goes bust?
• What happens if the company I work for goes bust?
• What if I don’t know who my pension provider is?
• What if I lose money due to bad pension advice?

What happens to my pension if my provider goes bust?

If your pension provider goes out of business, you could be due compensation depending on where your money is invested and your type of pension.

The good news is that your type of pension—whether a workplace pension or a personal pension—comes with specific safety nets.

For those in contribution pension schemes, a layer of protection is designed to secure your retirement savings so you can confidently look forward to your retirement.

Workplace pensions are often part of larger schemes protected by regulatory bodies, while personal pensions are typically insured, offering a degree of security against unforeseen circumstances.

No matter the case, there are systems aimed at preserving your retirement income so you can focus more on planning for your future and less on the “what-ifs.”

What happens if the company I work for goes bust?

If the company you work for faces financial difficulties and goes bust, it’s natural to worry about your pension if you’re part of the company’s pension scheme.

However, salary schemes and company pensions are not left adrift in these situations. When a company cannot continue its operations, structures are in place to protect the pension company and its members. This means your hard-earned pension savings are safeguarded, so the effort you’ve put into contributing to your company scheme doesn’t vanish overnight.

The protection your pension receives largely depends on the type of company scheme you’re enrolled in.

Benefit schemes

For those in defined benefit schemes, the Pension Protection Fund (PPF) serves as a safety net, designed to step in and provide compensation for your pension if your employer can no longer support it. This means that your retirement plans remain intact even in the face of your company’s financial struggles.

Contribution schemes

For those in defined contribution schemes, the protection is a bit different. Your pension pot is typically held separately from your company’s finances, meaning it shouldn’t be directly affected if the company goes under.

Instead, a separate pension company or provider manages these funds, keeping your pension savings safe from the company’s financial turmoil.

What happens if I don’t know who my pension provider is?

As you approach your retirement age, it’s important to have a clear overview of where your pension contributions have gone, including any salary pension schemes you might have been a part of during your working life.

But there’s good news! Even if the insurance company’s or pension fund’s name slips your mind, there are friendly helpers along the way. The pension tracing service is a fantastic starting point. This free service can help you rediscover where your pension payments have been directed so you can make informed pension choices as you plan for the future.

Rest assured, the path to understanding and managing your pension savings is well-supported by services and protections designed with your financial security in mind.

What if I lose money due to bad pension advice?

Facing financial trouble due to bad financial advice, especially concerning pension money, can be incredibly stressful. Unfortunately, this is a reality for some, but there are steps you can take to turn these challenging times into a financial victory.

Getting good advice on pensions is key to making sure you have enough money to enjoy your retirement without stressing over care costs or life’s other expenses. If you find yourself in a situation where lousy advice has risked your pension savings, remember that help is available.

Speak to the experts at Spencer Churchill Claims Advice

Has your pension provider gone bust? Do you deserve pension compensation? That’s where Spencer Churchill Claims Advice comes in.

We have helped secure successful claims and thousands of pounds in redress payments for our clients; we are committed to guiding you every step of the way.

Our team of legal experts specialises in helping with mis-sold pensions. Don’t let uncertainty about past decisions affect your peace of mind.

Contact us now for an in-depth review of your case.