What happens if my pension provider goes bust?
There are a number of safeguards in place that protect a pension should a provider go out of business. Read our guide to find out what you should know.
6 April 2026
2 min read
When you put your hard-earned money away, you want to know you're protected should something go wrong - especially with a long-term investment like a pension. In this article, we'll look at what happens if your pension provider goes out of business.
What happens if my personal pension provider goes bust?
If your pension provider goes out of business, you may be due compensation from the Financial Conduct Authority (FCA). How much you'll get back depends on:
- where your money is invested
- the type of pension you have
- whether your provider is regulated by the FCA
How much pension refund will I get?
If a SIPP provider goes bust and you aren't able to transfer your pot to another provider, you'll be able to claim compensation from Financial Services Compensation Scheme (FSCS). In most cases, you'll be eligible to receive up to £85,000 of your savings back.
For other pension types, your protection depends on how your money is invested. You can see the full list of compensation available by visiting the FSCS website.
If you aren't sure which kind of pension you have, or you want to know more about how your money is protected, it's always best to check with your pension provider.
What if Penfold goes bust?
Penfold is FCA regulated and part of the FSCS.
With Penfold, there are a number of safeguards in place to make sure you'll always be able to get your money back. Everything you pay into your pension is invested by our fund managers, BlackRock or HSBC, depending on which pension plan you chose.
The good news is that, should something happen to Penfold, your money is held by them, not us. This means you can simply transfer your savings to another provider - ready to access when the time comes.
What if the fund manager goes bust?
BlackRock and HSBC are two of the largest money managers on the planet - responsible for billions in diversified investments across the globe.
In the extremely unlikely scenario that Penfold AND BlackRock and/or HSBC were to go out of business, your money is protected by FSCS. This means you'll be eligible to claim up to £85,000 back in compensation.
