Covering myself if pension goes bust?

A reader is worrying about how to protect himself from his pension company going bust.

Our pensions expert, Tom McPhail, a leading commentator on pensions at Hargreaves Lansdown with broad experience of pensions and investment related issues, takes him through the problem.

David from Norwich asks:

I have a sizeable SIPP pension fund with a leading insurance/pension company.
Are you aware of any insurance which I could take out with another insurance company equal to the value of the fund in case the SIPP provider suffers catastrophic failure as a business?

Tom replies

No, unfortunately, though there may be such a scheme that I am not aware of.
However, the investors’ compensation scheme would protect you in the case of failure of your scheme administrator.

If you have a pension question for Tom McPhail go to the myfinances.co.uk ask the pensions expert section.

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