Check your annuity options
Which? says you can trust HUB Financial Solutions to compare across the whole market
Find out moreBy clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
'What happens if my annuity provider goes bust?'
Every week we help you with your money problems
I’m considering buying an annuity with my pension pot of £64,000. Will I still get payments if my annuity provider goes bust?
Christopher from Essex
'Your annuity gets more protection than your bank account'
Joanne Padilla, Which? Money expert, says...
Yes, annuities provided by UK-regulated insurers are protected by the Financial Services Compensation Scheme (FSCS) up to 100% of their value, with no upper limit.
That's in contrast to bank accounts, where you're protected up to £85,000 per person per bank.
You can double-check that your annuity provider is authorised by the Prudential Regulation Authority (the UK regulator for these products) by looking it up on the Financial Conduct Authority Register (register.fca.org.uk).
Not all pension products are protected in the same way.
For example, self- invested personal pensions (Sipps) are classed as ‘uninsured’ pension schemes (as opposed to ‘contracts of long-term insurance’). If your Sipp provider goes bust, up to £85,000 will be protected.
Not all pension products are protected in the same way
The providers of Sipps have their investors’ funds held separately, so the money is safe if they were to go out of business.
The FSCS has a tool on its website that allows you to see what protection applies to your pension.
It says that most claimants with pension-related cases get decisions within 14 months.
Which? Money 1-to-1 guidance
Our team of money experts can answer your questions big and small, on topics from pensions to tax and savings to scams.
They're impartial so they don’t give regulated financial advice or recommend particular products or providers – they’re here to support you and to help you make more confident financial decisions in these areas and more:
Which? Money members and their immediate family get unlimited access to 1-to-1 guidance sessions.
If you're a Which? Money member, you can book an appointment online. If you're not, you can find out more about membership.
