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How safe is an Annuity?

I'm aware of the £85k safety net for savings but is there anything similar for pension annuities?.
At a basic level, a much larger sum than this could be handed over to buy an annuity in the expectation of a regular monthly sum being received for the rest of your life - what happens if the insurer (or whoever) providing the annuity goes bust?

Comments

  • xylophone
    xylophone Posts: 45,945 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    http://www.pensionsadvisoryservice.org.uk/security-of-pensions

    "Annuities
    If the provider of your annuity were to go bust, you will qualify for compensation from the FSCS on the basis of the annuity being Long Term Assurance. The level of protection is unlimited and is calculated as 90% of the claim. The claim would be based on the value of the annuity and should include the level of spouse's benefits, inflation cover and other features that you have built into the annuity."
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