How your pension is protected

How your pension is protected depends on your pension type.

Defined contribution pensions

If your employer goes out of business you won’t lose your pension pot. This is because defined contribution pensions are usually run by pension providers, not employers.

Some defined contribution pensions are run by a trust chosen by the employer. Contact your employer for exact compensation details.

If your provider can’t pay

You can be compensated for up to 100% of the value of your pot if your pension provider can’t pay you and is authorised by the Financial Conduct Authority (FCA).

You can claim compensation from the Financial Services Compensation Scheme.

Defined benefit pensions

These pensions are usually protect by the Pension Protection Fund.

You’ll usually receive:

  • 100% compensation if you’ve reached your ’selected retirement age’ (the age you agreed with your pension provider to retire)
  • 90% compensation if you’re below your selected retirement age

Annuities

You can claim for up to 100% of the current value of your pot if your annuity provider can’t pay you and is authorised by the FCA.

Contact your provider if you need to complain about a pension.