How the FSCS Protects Your Pension
Jan 17, 2024
A Safety Net for Your Savings
The Financial Services Compensation Scheme (FSCS) acts as a safeguard for your money when it’s held with UK authorised financial firms. It was setup up as an independent body under the Financial Services and Markets Act 2000, and is fully funded by financial services companies in the UK.
What the FSCS Means for You
In essence, if a company like Penny, which is authorised by the Financial Conduct Authority (FCA), faces issues such as insolvency or asset deficiency, the FSCS steps in to protect its customers. It's comforting to know that the FSCS has been reliably supporting customers since 2001!
Penny's Involvement with the FSCS
Security is a top priority at Penny, and we are therefore proud to be part of the Financial Services Compensation Scheme. This means your pension with Penny not only benefits from expert management but also has an added layer of protection.
Comprehensive Coverage
For different types of investments, including pensions, the FSCS offers varying levels of protection. For instance, contracts like annuities provided by UK-regulated insurers are generally secured at 100%, with no upper limit. In the case of personal pensions, such as the ones managed by Penny, the FSCS can compensate up to £85,000 per member, providing substantial coverage.
What Isn't Covered
It's important to note that the FSCS does not cover defined benefit workplace pensions. But don't worry – there's another safety net for these, called the Pension Protection Fund (PPF).
Effortless and Free
Good news! The assistance and protection offered by the FSCS come at no cost to you. Their aim is simply to provide peace of mind and financial security for your pension investments.
