Pension: What happens to your pension if a company folds?

Anyone with a defined contribution pension has built up a pension pot which belongs to them.

This scheme is often managed through a separate investment company, which will not go to the PPF.

Instead, the individual can decide how it is invested and how to manage it when they reach retirement.

The PPF, however, does work with defined benefit pensions, which are pensions where the employer effectively gives a pension promise about how much you will receive at your time of retirement.

This amount is often based upon your final salary or an average of your career salary.