FSCS
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Almost £2billion lost in retirement savings since 2019, with men most likely to claim, new data from FSCS shows
More than 43,000 claims have been received by the Financial Services Compensation Scheme (FSCS) since 2019 for total pensions losses reaching almost £2billion when authorised financial providers and advisors went out of business, according to new analysis of FSCS claims data, with four out of five made by men.
- New data from FSCS highlights the scale of the problem impacting those planning for retirement, with more than 43,000 claims received by FSCS in relation to pension losses since 2019.
- Across these 43,000 claims, customers reported losing almost £2billion from their pension savings.
- FSCS analysis also shows most claims for pension losses have come from men over 45 who make up four in five of the claims to FSCS.
- In the latest phase of its public awareness campaign, FSCS has partnered with sports broadcaster Jeff Stelling to encourage those most at risk to improve understanding of FSCS protection.
FSCS is only able to step in and pay compensation on pension and Self-Invested Personal Pension (SIPP) claims protected under FSCS’s compensation rules, which typically limits the compensation available to £85,000.
The data highlights the extent of the problem facing workers across the UK planning for retirement, with millions of pounds in savings lost every year from authorised financial providers or advisors going out of business. FSCS has released the new data to shed light on the scale of the issue and to raise awareness of what can be done to reduce the risk of loss to retirement savings.
FSCS’s analysis also shows that most claims for pensions losses have come from men over the age of 45; 77 per cent of the pension and SIPP claims handled by FSCS since 2019 have been made by men, with 95 per cent of all claimants aged between 45 and 75. To raise awareness with those most at risk, FSCS has partnered with television presenter and football broadcaster Jeff Stelling, to help amplify the messages of the campaign.
Jeff yesterday said:
“The impact of losing retirement savings can be devastating. 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. 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. Regardless of your income or lifestyle, your retirement dreams can be left in tatters.
“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.”
Martyn Beauchamp, Interim Chief Executive at FSCS, yesterday 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.
“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. Our free pension protection checker is just one of the tools that FSCS offers to help people feel confident about their money, and we encourage everyone to visit the FSCS website and check that their retirement savings are protected.”
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Please email publicrelations@fscs.org.uk.
Original article link: https://www.fscs.org.uk/media/press/2024/apr/almost-2bn-lost-since-2019-men-most-likely-to-claim/