Retirement Savings - It's All About Confidence

10 June 2015

We are living longer and with many of us likely to reach the age of 80 or 90, the need to accumulate pension benefits into the future is an important aspect of financial planning.

Sadly, we have in years gone by seen some pension funds being reduced owing to scandalous company behaviour and it is good to know that the Financial Services Compensation Scheme (FSCS) is available to those with defined contribution / money purchase / personal pension plan type arrangements.

For those in final salary (defined benefit) pension schemes, there is the Pension Protection Fund (PPF), which guarantees 90% of the guaranteed final salary pension income up to a set limit, or cap, which is £36,401 from 01 April 2015. Further details of this can be found here:

http://www.pensionprotectionfund.org.uk/Pages/Compensation.aspx

Chapters Financial Limited is not responsible for the content of external websites.

Currently the Financial Services Compensation Scheme offers protection which varies by financial product. As an example, deposits are protected up to £85,000 per person per firm and currently 90% of the claim, with no upper limit, is protected for claims relating to failed providers of long-term insurance policies such as pensions and life assurance.

It is of note that this protection is being bolstered to a level of 100% of the claim, with no upper limit, for claims relating to failed providers of long-term insurance policies (such as pensions and life insurance, as noted above) from 03 July 2015.

The situation for pensions is complicated, but details of the full provisions and depth of coverage of the Financial Services Compensation Scheme can be found here: http://www.fscs.org.uk/what-we-cover/products/pensions/

Other types of savings products covered can be found here: http://www.fscs.org.uk/what-we-cover/products

Chapters Financial Limited is not responsible for the content of external websites.

I have no doubt that this will go some way to reinforce the profession and industry's commitment to ensure that individuals with long-term retirement savings are protected for the future.

If you would like to know more about the protection covers that are available for various schemes and products, including pensions and investments, then please do not hesitate to let the Chapters Financial team know at our Guildford or Woking office.

No individual advice is provided during the course of this blog.

Keith Churchouse FPFS
Director
Chartered Financial Planner
Certified Financial Planner
ISO22222 Personal Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.