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

sally_dickson
sally_dickson Posts: 6 Forumite
Fourth Anniversary First Post
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
«13

Comments

  • El_Torro
    El_Torro Posts: 1,909 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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
    born_again Posts: 20,649 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    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 lane
  • flaneurs_lobster
    flaneurs_lobster Posts: 6,697 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    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
    Marcon Posts: 14,583 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    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.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Albermarle
    Albermarle Posts: 28,127 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    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
    sally_dickson Posts: 6 Forumite
    Fourth Anniversary First Post
    Marcon 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
    sally_dickson Posts: 6 Forumite
    Fourth Anniversary First Post
    thanks


    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
    Albermarle Posts: 28,127 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    thanks


    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
    Cobbler_tone Posts: 1,069 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 17 May at 4:10PM
    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.
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