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Pension pot and what if

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modelreject
modelreject Posts: 703 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
Hi,

I have posted a couple of thread regarding advice on pensions and feel that I will get one. There is one question with regards to all that lovely money that is being stashed away.

I have heard of people losing all their pension finds because a company went bust. Is there any way to retreive your moneyor some form of compensation? Would it be backed by a government scheme? Also, what if you think a company is going to go bust, can you remove your funds.

Thanks,
C

Comments

  • bendix
    bendix Posts: 5,499 Forumite
    I think you're getting confused. The only people who have lost their pension funds because a company went bust would have been in final salary or defined benefit pension which are effectively managed by the person's employer. A high profile case would be Mirror Group pension, when Maxwell effectively raided the company's pension fund.

    Even this is unlikely nowaday because such pensions are protected by the Pension Protection Fund.

    Nobody ever lost their pension any other way because the funds are yours and invested in investable assets.
  • Would it be backed by a government scheme?

    http://www.pensionsadvisoryservice.org.uk/security-of-pensions

    The amount of protection depends on the mechanics of the actual scheme you're using.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • Thanks. I'll have a read through that link later and try to get my head round everything. :-)
  • bendix
    bendix Posts: 5,499 Forumite
    Thanks. I'll have a read through that link later and try to get my head round everything. :-)

    Less thinky, more do-ey
  • dunstonh
    dunstonh Posts: 119,706 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I have heard of people losing all their pension finds because a company went bust.

    No personal pension has gone bust. The worst that has occurred was Equitable Life. However, that was them reneging on guarantees (that were over the top to begin with). The events that led to Eq Life's problems were investigated and rules tightened. Good job too as when the credit crunch came it was noticeable that the UK insurance companies came through it. If Eq Life hadn't have happened, it may have been different.

    The term "pension" covers a wide range of schemes. Its not just one thing.
    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.
  • Searching for reputable IFA in Belfast. Will let you know how I get on. Thanks for all the help! :)
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