If the system was stable, why change the rules?
The UK’s financial watchdogs are quietly preparing for trouble. The Financial Services Compensation Scheme (FSCS) — which protects depositors if a bank fails — is now being considered for a major uplift. The Prudential Regulation Authority (PRA) has proposed increasing the FSCS deposit limit from £85,000 to £110,000, with the change potentially taking effect on 1 December 2025.
That’s an increase of more than 29%, but it’s not automatic. It’s still under consultation, with no guarantees — and the timing matters. If everything were as secure as headlines often suggest, would regulators be proposing a near-30% boost to the safety net?
FSCS: a delayed defence, not a daily safeguard
Let’s be clear — the FSCS doesn’t prevent financial crises. It reacts to them. If your bank collapses, FSCS steps in — but only up to its cap, and only after the damage is done. And collapses aren’t theoretical. Just two years ago, Silicon Valley Bank UK folded overnight. It took a government-brokered deal for HSBC to buy it for £1 — barely avoiding a full-blown depositor panic.
The current £85,000 cap didn’t move then, even though panic spread globally. Now, in 2025, the system is proposing more protection — but the change is months away at best, with final approval still pending.
Your pension lump sum isn’t fully protected
If you’re planning to retire, you may be eligible to take up to £268,275 tax-free from your pension. But here’s the problem:
- Only £85,000 of that is protected under FSCS (until the limit changes)
- Even at £110,000, you’re still leaving over £150K exposed
- And the limit increase won’t be active for at least 8 more months
In short: if you store your lump sum in a single bank account, a major portion is unprotected right now.
For savers looking to protect decades of hard work, that’s a glaring exposure. FSCS protection may rise — but inflation, policy shifts, and bank failures aren’t on pause while you wait.
While FSCS protection is being discussed, gold has already delivered
As the FSCS inches toward a decision, gold has quietly done what central banks and regulators can’t — protected real value in real time. In the last 12 months alone, the price of gold has risen by over 35%. Zoom out to the last three years and it’s up more than 65%, far outpacing inflation, cash interest rates, and any mainstream savings product. This isn’t a theory — it’s market performance.
Why does that matter for people planning their retirement? Because while the FSCS is built to react after a bank collapses, gold works before one ever does. You’re not waiting for a decision, a rescue, or a claims process. You’re simply holding an asset that historically strengthens during times of financial instability. Gold doesn’t ask for permission — it performs. And right now, it’s outperforming nearly everything else that savers typically rely on for security.
Unlike FSCS, which only protects against total institutional failure (and only up to a capped amount), gold offers long-term stability and independence from banking risk altogether. And for people who worked hard with six-figure sums in motion, that kind of protection isn’t just desirable — it’s essential.
Why wait until December 2025 to feel financially secure?
Here’s the thing: the proposed FSCS limit increase won’t come into effect until 1 December 2025 — and that’s only if it’s approved. That means if you’re planning a pension withdrawal or have savings sitting in a traditional bank today, you’re unprotected above £85,000 for at least the next eight months.
And this delay is telling. It shows that the system knows it needs a stronger safety net — but it’s not ready to provide it just yet. For people already in retirement or entering it soon, that’s not good enough. Your financial safety shouldn’t depend on a pending consultation or the slow-moving gears of regulatory approval.
It’s a bit like being told your seatbelt will be upgraded after the motorway — comforting in theory, but useless if anything goes wrong before Junction 18. You wouldn’t drive without a seatbelt today just because a better one is coming — so why risk your life savings on future policy?
In contrast, gold offers immediate value, and platforms like TallyMoney allow you to own it directly — and use it like cash. With Tally, your money becomes digital access to physical gold that you can spend, transfer, or withdraw anytime. There’s no waiting for changes, no hoping your bank doesn’t fold. It’s value you control, backed by real, insured assets — today.
Institutional protection arrives late — history proves it
It’s not just recent cases like SVB UK that raise questions. The UK has seen a number of financial institutions face unexpected difficulties over the years. Take Northern Rock, for example — once a major name in retail banking, it faced a crisis of confidence in 2007 that led to customers queueing outside branches to withdraw their funds. At the time, the Financial Services Compensation Scheme (FSCS) limit wasn’t enough to fully reassure depositors
This reactive approach to regulation — where changes follow public concern — leaves savers exposed during moments of uncertainty. For those planning their retirement or managing significant pension savings, such as pots over £200,000, relying solely on reactive safeguards may feel insufficient. The FSCS exists to protect savers, but when events move quickly, having control and flexibility over your funds becomes just as important as the safety net itself.
Gold doesn’t promise protection — it delivers it.
TallyMoney isn’t a savings account. It’s not a fund. It’s your own physical gold, stored in audited, fully insured vaults — with every tally equal to 1 milligram of gold that you own outright. It’s money with intrinsic value, held outside the banking system, but accessible through the Tally app or debit Mastercard just like any everyday current account.
And here’s where the protection goes beyond even the FSCS: if anything were ever to happen to TallyMoney as a business, your gold would be sold — and 99% of the proceeds go back to you within 14 days. The other 1%? That’s reserved to cover the legal and logistical costs of liquidation and ensure it’s completed at speed. It’s full transparency, baked into the structure, not tacked on after the fact.
So while the FSCS talks about increasing protection later, TallyMoney gives you asset-based protection right now. For people holding substantial savings, it’s a straightforward choice: trust a proposed scheme still in consultation — or own real gold, with real access, today.
Take control before the system decides for you
You’ve worked too hard to leave your retirement savings in limbo. The FSCS might raise its limit — but gold already has. With TallyMoney, you don’t have to wait for regulators to catch up. You can move your money into real, physical gold today — fully insured, fully owned, and instantly accessible. No promises. No delays. Just value that holds.
Protect your pension lump sum now — before someone else decides how safe it is.
Open your TallyMoney account and put your money to work in something solid.
