Urgent UK pension warning as 2bn lost – ‘don’t make this crucial mistake’ | Personal Finance | Finance [Video]

More than 40,000 people have seen retirement pension pots worth almost £2 billion disappear due to failing or rogue financial firms since 2019.

The figures have been revealed by the Financial Services Compensation Scheme (FSCS) which steps in when regulated financial firms fail.

However, the safety net operated by the organisation typically limits compensation to £85,000 which is often not enough to provide full redress.

The huge losses identified by the FSCS mean retirement dreams and the security of thousands of people have been left in tatters.

A spokesman said: “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.

“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.”

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