Would combining different savings accounts potentially expose me to greater losses if that company ever went bankrupt?

25 October 2022

Question by David

My retirement savings are currently spread between two cash ISAs and two SIPPs, all held with different companies. I plan to adopt a drawdown approach with my SIPP savings.

I would like to combine these different accounts into a single ISA and a single SIPP held with a single company/investment platform to help me manage them more easily. Would that potentially expose me to greater losses if that company ever went bankrupt? Would the FSCS protection be capped at £85,000 for all of my retirement savings?


Answered by

HI David,

That's a good question to ask. You don't need to worry as your money will be held by a nominee so it is entirely separate from the platform you select, and the fund manager in which you are invested. The only risk you are exposed to of this nature is if you have money in a SIPP/ISA bank account or structured product and the providers of those go bust, but if you select, say Aviva or Transact or AJ Bell or any other platform provider on the market and they go bust, your money is safe.

Please do let me know if I can be of further help in terms of cashflow planning to make sure you don't run out of money in your retirement!

Rachel