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  • FIRST POST
    • soulsaver
    • By soulsaver 19th Jun 17, 11:49 AM
    • 1,343Posts
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    soulsaver
    How is a DC pension in payment protected?
    • #1
    • 19th Jun 17, 11:49 AM
    How is a DC pension in payment protected? 19th Jun 17 at 11:49 AM
    Simple enough question: I have a DC pension 'guaranteed' for the next 20 years (in exchange for a reduction in rate) - i.e. if I die tomorrow it carries on being paid to the spouse /nominated beneficiary for the balance of the 20 years.

    In the hopefully unlikely event that the company can't pay, how, if at all, is it protected?

    Is there a difference in the protection if I'm alive or passed?
    There are 24 bottles of beer in a crate. There are 24 hours in a day. Coincidence? I think not....
Page 1
    • dunstonh
    • By dunstonh 19th Jun 17, 12:01 PM
    • 89,534 Posts
    • 54,984 Thanks
    dunstonh
    • #2
    • 19th Jun 17, 12:01 PM
    • #2
    • 19th Jun 17, 12:01 PM
    I have a DC pension 'guaranteed' for the next 20 years (in exchange for a reduction in rate) - i.e. if I die tomorrow it carries on being paid to the spouse /nominated beneficiary for the balance of the 20 years.
    is this a scheme pension or an annuity?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • soulsaver
    • By soulsaver 19th Jun 17, 12:26 PM
    • 1,343 Posts
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    soulsaver
    • #3
    • 19th Jun 17, 12:26 PM
    • #3
    • 19th Jun 17, 12:26 PM
    is this a scheme pension or an annuity?
    Originally posted by dunstonh
    It's a Pension Annuity: An annuity bought from funds generated in the first instance in a DB scheme, transferred to a DC scheme (30 years ago) and used to for what L&G call a Pension Annuity.
    There are 24 bottles of beer in a crate. There are 24 hours in a day. Coincidence? I think not....
    • bostonerimus
    • By bostonerimus 19th Jun 17, 1:17 PM
    • 879 Posts
    • 443 Thanks
    bostonerimus
    • #4
    • 19th Jun 17, 1:17 PM
    • #4
    • 19th Jun 17, 1:17 PM
    Your first protection is the insurance company and it's financial solvency. I have a guaranteed deferred annuity with TIAA-CREF in the USA. I'm not worried about it because TIAA-CREF has a A++ rating. I imagine there is some government insurance scheme too....others will be able to describe that if it exists.
    Last edited by bostonerimus; 19-06-2017 at 1:20 PM.
    Misanthrope in search of similar for mutual loathing
    • dunstonh
    • By dunstonh 19th Jun 17, 1:32 PM
    • 89,534 Posts
    • 54,984 Thanks
    dunstonh
    • #5
    • 19th Jun 17, 1:32 PM
    • #5
    • 19th Jun 17, 1:32 PM
    It's a Pension Annuity: An annuity bought from funds generated in the first instance in a DB scheme, transferred to a DC scheme (30 years ago) and used to for what L&G call a Pension Annuity.
    Originally posted by soulsaver
    Annuities have 100% FSCS protection with no upper limit.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • soulsaver
    • By soulsaver 19th Jun 17, 2:24 PM
    • 1,343 Posts
    • 449 Thanks
    soulsaver
    • #6
    • 19th Jun 17, 2:24 PM
    • #6
    • 19th Jun 17, 2:24 PM
    Annuities have 100% FSCS protection with no upper limit.
    Originally posted by dunstonh
    Many thanks, Dunstonh. :thumbs up: http://static.moneysavingexpert.com/images/forum_style_1/icons/icon14.gif
    Last edited by soulsaver; 19-06-2017 at 2:27 PM.
    There are 24 bottles of beer in a crate. There are 24 hours in a day. Coincidence? I think not....
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