When it comes to your pension, feeling confident about the safety of your money matters. At Pension App, we want all customers to understand how their pension is protected, including the role of the Financial Services Compensation Scheme (FSCS).
The FSCS provides protection to customers if an authorised financial firm fails. This includes certain types of pension products. With Pension App, your money is held in a pension managed by a regulated provider and invested through BlackRock, one of the largest investment managers in the world. Your pension is protected by the FSCS up to the current limit of eighty five thousand pounds, offering an additional layer of reassurance.
This article explains what FSCS protection means, how it applies to your Pension App pension, and why it forms an important part of safeguarding your retirement savings.
The Financial Services Compensation Scheme is an independent body that protects customers if a regulated financial firm goes out of business. If that ever happened, the FSCS can step in and compensate eligible customers, up to a set limit.
For pensions, this protection can apply when your SIPP provider fails and cannot meet its obligations. The current FSCS limit is eighty five thousand pounds.
The FSCS does not protect against investment losses. Pension values are not guaranteed and the value can go down as well as up.
Pension App works with regulated pension and investment firms, which means your savings sit within an FCA authorised structure. If the SIPP provider were ever unable to meet its obligations, the FSCS could compensate up to the limit of eighty five thousand pounds for eligible customers.
This protection covers:
the failure of the SIPP operator.
the failure of the firm holding the assets on your behalf.
It does not cover:
investment performance.
market movements.
changes in fund values.
Your pension continues to be invested through BlackRock. While they are one of the most respected and widely used investment managers worldwide, investment values can still rise and fall.
For many people, a pension is one of their largest financial assets. Knowing that there is a compensation scheme in place provides reassurance that, in the unlikely event of a provider failure, some protection exists.
FSCS protection supports our mission to make pensions simple, transparent, and secure. It is one of several safeguards that sit behind your Pension App account.
It sits alongside:
daily valuations.
regulated pension structures.
clear information about fees and processes.
secure digital transfer systems.
UK based customer support.
Together, these create a joined up and trustworthy pension experience.
You can learn more about FSCS protection on the FSCS website, including the full rules and eligibility criteria. We always encourage customers to stay informed about how pensions work, how they are protected, and what to expect from their pension provider.
With Pension App, everything is designed to give you a clearer view of your pension. FSCS protection is an important part of that picture, providing an extra level of comfort alongside our commitment to responsible, well managed pension processes.
With pensions, your capital is at risk.