Do you open a new pension when your pension fund exceeds £85,000

sally_dickson

Pensions are fully protected upto £85,000. So to be 100% protected against bank failure is the solution to have multiple pensions at different providers?

El_Torro

I do have multiple pensions, though a couple are worth more than £85k and I don't plan to make them smaller.

The reason I have multiple pensions is in case of IT failure or something similar. If one pension is inaccessible for whatever reason I can still access the others. I am still a long way from retirement, just planning ahead for when I do start drawing down. 

From my perspective the FSCS protection is not equivalent to the protection on say a savings account. Pensions (and other investments) are invested, so even if my pension provider goes bust my investment is still worth whatever the shares it holds are worth. 

born_again

https://www.fscs.org.uk/what-we-cover/pensions/

Might be a good read for you 👍

Where FSCS can pay compensation, we will cover the pension at 100% with no upper cap. We cannot confirm whether individual plans with specific providers would be classed as 'contracts of long-term insurance' or not – you would need to speak to your provider directly. 

Marcon

Plenty of threads on this topic if you have a browse. Poll is pointless - what are you going to do with the results?

flaneurs_lobster

Marcon said:

Plenty of threads on this topic if you have a browse. Poll is pointless - what are you going to do with the results?

Feed the results into ChatGPT - output is worth a PhD at one of the, er, newer Universities.

Marcon

flaneurs_lobster said:

Marcon said:

Plenty of threads on this topic if you have a browse. Poll is pointless - what are you going to do with the results?

Feed the results into ChatGPT - output is worth a PhD at one of the, er, newer Universities.

But that would mean getting the premise of the question correct... OP, you might want to correct (or just delete) this 'poll'. Your opening statement has the potential to mislead novices reading it. The second sentence is also unhelpful and inaccurate.

Albermarle

So to be 100% protected against bank failure 

I have had a few different pensions, and not one of them has been with a bank. 

sally_dickson

Marcon said:

flaneurs_lobster said:

Marcon said:

Plenty of threads on this topic if you have a browse. Poll is pointless - what are you going to do with the results?

Feed the results into ChatGPT - output is worth a PhD at one of the, er, newer Universities.

But that would mean getting the premise of the question correct... OP, you might want to correct (or just delete) this 'poll'. Your opening statement has the potential to mislead novices reading it. The second sentence is also unhelpful and inaccurate.

No, I guess I am just a bit thick. I don't know if my pension is protected above £85000, and I can't seem to find out where to check.

sally_dickson

thanks

born_again said:

Might be a good read for you 👍

Where FSCS can pay compensation, we will cover the pension at 100% with no upper cap. We cannot confirm whether individual plans with specific providers would be classed as 'contracts of long-term insurance' or not – you would need to speak to your provider directly. 

This seems to be saying my SIPP is only protected up to £85k, and my other pensions are only protected up to £85k depending on a number of things - which I don't understand. So I need to do some more work, but thanks for this link, it looks like a place to start.

Thanks very much

Albermarle

sally_dickson said:

thanks

born_again said:

Might be a good read for you 👍

Where FSCS can pay compensation, we will cover the pension at 100% with no upper cap. We cannot confirm whether individual plans with specific providers would be classed as 'contracts of long-term insurance' or not – you would need to speak to your provider directly. 

This seems to be saying my SIPP is only protected up to £85k, and my other pensions are only protected up to £85k depending on a number of things - which I don't understand. So I need to do some more work, but thanks for this link, it looks like a place to start.

Thanks very much

Probably worth noting that if you stick with mainstream providers, the chance of something going wrong is widely regarded as being vanishingly small. 
Whilst the regular contributors to this forum mostly stay within the £85K for cash savings account, going well above this for pension pots is normal. 

Cobbler_tone

flaneurs_lobster said:

Marcon said:

Plenty of threads on this topic if you have a browse. Poll is pointless - what are you going to do with the results?

Feed the results into ChatGPT - output is worth a PhD at one of the, er, newer Universities.

 But isn’t that the issue with AI? It will output what is input. Some of the AI responses at the head of Google are really funny but the overriding impact is pretty scary in terms of how duff info can gather momentum and be spread. It’s self fulfilling.

In answer to the original question, you can’t if you are tied to a workplace pension.