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

sally_dickson
Posts: 6 Forumite

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?
Do you open a new pension when your pension fund exceeds £85,000 54 votes
Yes. I have multiple pensions of £85000
1%
1 vote
No. I just let my pension grow and grow
92%
50 votes
No. It's too complicated
1%
1 vote
I don't know
3%
2 votes
0
Comments
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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.0 -
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.Life in the slow lane2 -
Plenty of threads on this topic if you have a browse. Poll is pointless - what are you going to do with the results?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!5
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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?2
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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?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!4
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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.4 -
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?0
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thanksborn_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.0 -
sally_dickson said:thanksborn_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.
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.1 -
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?
In answer to the original question, you can’t if you are tied to a workplace pension.1
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