Chat on WhatsApp

0114 266 4216

April 17, 2024

Nearly £2 billion in retirement savings lost since 2019 according to FSCS

Data reveals the impact of pension losses for customers of failed firms as FSCS kicks of awareness campaign 

Newly released data from the Financial Services Compensation Scheme (FSCS) revealed that almost £2 billion has been lost in retirement savings since 2019.

During this period, the FSCS received over 43,000 claims in relation to pension losses which in total amounted to nearly £2billion.

These are claims from customers of authorised financial providers and advisors who went out of business.

The FSCS is only able to pay compensation on pensions and Self-Invested Personal Pensions (SIPPs) claims that are protected under its compensation rules.

As such the compensation available is typically limited to a maximum of £85,000.

This means many clients end up with significant uncompensated losses.

The FSCS said that the data highlights the “extent of the problem facing workers across the UK planning for retirement”

Adding that millions of pounds in savings are lost every year as a result of authorised financial providers or advisors going out of business.

It hopes that by releasing this new data it will shed light on the scale of the issue and raise awareness of what can be done to reduce the risk of loss to retirement savings.

Men made the most claims

The data also showed that most claims for pension losses came from men aged over 45. They made up four out of every five claimants.

Since 2019, the FSCS says that 77 per cent of pension and SIPP claims that it handled were made by men. With 95 per cent of all claimants aged 45-75 years.

Martyn Beauchamp, Interim Chief Executive at FSCS, said: “The financial loss to people’s pensions that we see in our claims is substantial and has serious consequences for thousands of people every year.

“FSCS has long highlighted the importance of checking that your pension savings are protected, as these types of claims often come to us long after the financial harm may have occurred – and by that point it can often be too late to rebuild before retirement.”

 

Pension losses – People think it will never happen to them

The FSCS has launched a public awareness campaign, partnering with TV presenter and football broadcaster Jeff Stelling.

Stelling highlighted the devastating impact of losing retirement savings and stresses the importance of protecting pensions through FSCS.

Jeff said: “People think it will never happen to them, but that complacency could cost you your retirement. I’ve seen it happen to footballers on thousands of pounds a day and FSCS sees it happening to hard-working people all the time; savers left with nothing because they’ve taken poor advice or haven’t stayed on top of their savings.”

Stelling’s involvement aims to raise awareness among those most at risk, urging individuals to take proactive steps to safeguard their retirement funds.

The FSCS data underscores the critical need for individuals to ensure the protection of their pension savings amidst the risk posed by financial provider insolvency.

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.