How is a pension protected

balooney2000

I have put aside money in a pension with a large company offering investment funds. The total amount is held in one multi manager fund within a pension wrapper.

I am aware savings are protected to £85,000 by the FSA, and investment funds to £50,000. Are there are protection limits in place for pensions held this way? Is there a limit to how much would be protected per fund held in a pension wrapper?

I understand some companies are starting to offer insured funds for pensions but I am not sure what these are - or is not necessary if pension funds have FSA protection?

Thanks

dunstonh

I am aware savings are protected to £85,000 by the FSA

The Food Standards Agency doesn't provide any protection for savings

The deposit protection scheme is run by the FSCS.

Are there are protection limits in place for pensions held this way?

The investment protection scheme run by the FSCS applies. However, its less valuable when using unit linked investments as it really only protects you from fraud. It was more applicable in the days of with profits funds.

http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/

I understand some companies are starting to offer insured funds for pensions but I am not sure what these are - or is not necessary if pension funds have FSA protection?

pension funds are insured funds. However, the trend is actually moving away from insured funds to the use of unit trusts and oeics. Insured funds still dominate as all the basic to middle market contracts use insured funds.

Generally, if you are using FCA regulated investments and not investing in With Profits, funds offering capital protections or unregulated investments then you need not be too concerned.