Almost £2bn in retirement savings has been lost since 2019 across more than 43,000 claims, data from the Financial Services Compensation Scheme has revealed.
The lifeboat scheme said this highlights the extent of the problem facing workers across the UK planning for retirement, with millions lost every year from authorised providers or advisers going out of business.
The analysis showed most claims for pension losses came from men over the age of 45.
It reported that 77 per cent of the pension and Sipp claims handled by the FSCS since 2019 have been made by men, with 95 per cent of all claimants aged between 45 and 75.
FSCS interim chief executive, Martyn Beauchamp, said: “The financial loss to people’s pensions that we see in our claims is substantial and has 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.
“At FSCS we’re committed to helping educate consumers, so they feel confident and informed when tackling important financial decisions, such as those faced when approaching retirement.”
However, the FSCS cautioned that it is only able to step in and pay compensation on pension and Sipp claims protected under FSCS’s compensation rules, which typically limits the compensation available to £85,000.
Awareness
To raise awareness of this issue with those most at risk, FSCS has partnered with television presenter and football broadcaster, Jeff Stelling, to amplify the messages of the campaign.
“The impact of losing retirement savings can be devastating,” Stelling said.
“While they vary for each individual, negative outcomes can include a much lower than expected quality of life, with some forced to sell their homes, stay in work for longer than planned, or scale back their retirement plans.
“People think it will never happen to them, but that complacency could cost you your retirement.
“It has never been more important that you take time to check your money - and your future - is protected and one simple step that everyone can do today is to make sure that their pensions are FSCS protected, because you may rely on it one day.”
tom.dunstan@ft.com
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