Company goes bust - pension options?

GillHill

Hi, looking for advice re the possibility of my company failing due COVID19 economic downturn.  I am in a position to draw my company pension now (approximately 1 year before NRA) - would this offer any additional security if the company went bust, or does it make no difference? 

Ceme3000

You will need to explain what sort of pension it is. If it is a defined contribution scheme then you will get a different answer than if you have a defined benefit (final salary) scheme.

GillHill

About 85% of my pension is final salary - my company recently closed the original scheme so the other 15% now sits within a defined contribution scheme. My biggest concern would be the 85% so an6 advice on that would be much appreciated, thank you.

mark55man

I think even with the extra information you need to provide a little bit more - when you left did they break the connection between your salary and the DB scheme - ie - is it as if you had left the company.  or are you still linking but just not adding any new years of service 

Ceme3000

This is a good starting point OP
https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/leaving-your-pension-scheme/insolvency

Malthusian

GillHill said:

Hi, looking for advice re the possibility of my company failing due COVID19 economic downturn.  I am in a position to draw my company pension now (approximately 1 year before NRA) - would this offer any additional security if the company went bust, or does it make no difference? 

In itself, nope. The Pension Protection Fund has a higher level of protection for those already over NRA - which doesn't apply to those who take their pension early.