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what happens to an annuity if company goes bust?

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singer29

singer29 Posts: 3 Newbie

7 October 2008 at 12:28PM in Pensions, annuities & retirement planning

My husband purchased an annuity with his private pension when he had to retire early due to ill health and receives a monthly income from it.In the current financial situation, what would happen if the company that administers it were to get into difficulties? Would there be any protection or would the money be lost?

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dunstonh Posts: 119,786 Forumite

7 October 2008 at 12:32PM

Its classed as an insurance contract and insurance FSCS protection applies.

I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

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lilac_lady Posts: 4,469 Forumite

7 October 2008 at 6:57PM

Does that mean an annuity is safe after it's in payment? No reduction in payment even if the insurance company goes bust?

" The greatest wealth is to live content with little."

Plato

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ragtagbobtail Posts: 14 Forumite

31 October 2008 at 4:42PM

dunstonh wrote: »

Its classed as an insurance contract and insurance FSCS protection applies.

How safe are annuities? What if there are numerous claims against FSCS can they go bust??

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dunstonh Posts: 119,786 Forumite

31 October 2008 at 4:50PM

How safe are annuities?

Already answered.

What if there are numerous claims against FSCS can they go bust??

The Govt underwrites the FSCS by provision of loans.

I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

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