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Is It A Good Or Bad Idea To Have Savings in One Pension/ISA?
Foresty_Forest
Posts: 53 Forumite
Currently nearly all my savings are in an Aviva pension and ISA. Is that eggs in one basket? Stock market collapse aside, could my savings be lost? Should I have money in other places?
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Comments
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How much?..0
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If you mean with reference to the FSCS £85K compensation limit then that is the limit per institution. However I think as far as Aviva goes, it would only apply to uninvested cash. Your investments would be protected by whatever nominee protection there is.If you mean with reference to Aviva going under and not having access to your investments for some time as with the recent SVS securities case, then it would be a good idea to move either your pension or ISA to another provider to guard against this scenario.0
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If you mean with reference to Aviva going under and not having access to your investments for some time as with the recent SVS securities case, then it would be a good idea to move either your pension or ISA to another provider to guard against this scenario.
It probably is a good idea , if only to have experience with another platform .
However it has got to be said that the chance of Aviva going bust must be very very small indeed. You can not compare them with SVS .0 -
I have 3 pension pots (from 2 previous employers and the current one). All 3 are with Scotish Widows. Combined it is over £85k. I did ask at a pension review what protection we have and was told that pensions have a greater level of protection than savings. Unfortunately he didn't elaborate more.
For the OP, I think as long as the ISA isn't over £85k you should be safe as the pension shouldn't count towards the FSCS protection amount.0 -
I have 3 pension pots (from 2 previous employers and the current one). All 3 are with Scotish Widows. Combined it is over £85k. I did ask at a pension review what protection we have and was told that pensions have a greater level of protection than savings. Unfortunately he didn't elaborate more.Assuming its not the SW retirement account and you are not using Unit Trusts/OEICs then you have 100% FSCS protection on internal SW funds (SW own funds). With the external funds (those that mention an external fund house) the shades are grey as to what level of FSCS protection you would get depending on where the failure is). Its never been tested and the FSCS won't confirm as they haven't looked into it. Some providers believe its 100%. Some believe its £85k. Some believe its where the failure it that decides which level of protection you get.
The same applies to Aviva. It will either be 100% with no upper limit or £85k
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.0
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