We often hear the word ‘mis-sold’ in this day and age. In recent years, there has been a huge amount of interest in mis-sold financial products, but most adverts and articles have focused on PPI. PPI claims are commonplace, but they are not the only type of claim you can make. If you’re worried that you might have been mis-sold your pension, or that you received inaccurate or misleading advice, it’s wise to consider making a claim.
What is a mis-sold pension claim?
Many people will be familiar with compensation claims linked to mis-sold payment protection insurance, but there are measures in place to protect consumers who have taken out all kinds of financial products. In the UK alone, the FSCS (Financial Services Compensation Scheme) has paid out more than £112 million in mis-sold pension claims through SIPP. Mis-selling a pension can have incredibly harmful effects on an individual’s finances, and it’s only right that people who have been misled or deceived have the right to seek justice. Mis-sold pension claims are designed to benefit those who have been on the receiving end of negligent behaviour.
Types of mis-sold pension claims
There are various types of mis-sold pension claims, and we’ll discuss them in more detail now.
SIPP Claims: SIPP claims relate to SIPPs (self-invested personal pensions). This type of pension can be an excellent way to save for your retirement and grow your money through a pension scheme, but there are risks involved, and these risks are intensified by misleading or unhelpful advice. If you think you might have been mis-sold a SIPP pension, it’s worth thinking about making a claim. There are several instances that cause alarm bells to ring, including an adviser:
- Stating that a SIPP is the best option without considering alternatives or reviewing your financial situation
- Failing to provide information about the type of investment involved with a SIPP
- Failing to explain the risks associated with a SIPP
- Up-selling the tax benefits of a SIPP instead of the pension advantages
- Neglecting to advise a client that HMRC can alter tax regulations at any time
- Providing unclear or inaccurate advice
- Flouting FCA rules
Final Salary Transfer Claims: final salary pensions provide stability for employees once they have taken retirement, offering a secure income for life. A final salary transfer can result from poor advice and put the individual’s finances at risk. Final salary transfer claims have become increasingly commonplace. In 2018/2019, the Financial Ombudsman revealed a 44% increase in the number of complaints compared to the previous year. If you were advised to transfer your pension, you could be eligible for a mis-sold pension payout if the advice you received was unsuitable. An FCA study found that around 50% of people were given the wrong advice related to pension transfers in 2018.
Annuities Claims: a mis-sold annuity could impact your finances negatively when you retire, even if you had a healthy pension pot. An annuity policy is designed to provide security in retirement by offering regular payments in either monthly or annual installments. The amount you receive will depend on how long the annuity provider thinks you might live. This calculation is based on factors, such as age, health status and history and your lifestyle. Annuity pensions can work well, but if you’ve not received the right advice, there are risks. Here are some common signs of mis-sold annuities:
- Not receiving information about all your options
- Receiving a standard annuity rate
- Not being made aware of additional hidden charges and fees
- Not receiving death benefits
How do I know if I’ve been mis-sold my pension?
In some cases, it can be challenging to determine whether a company or an adviser have displayed negligence, and you might not be 100% sure that your pension was mis-sold. If you’ve only ever been to see a financial adviser once before, or you have limited knowledge of pensions, it’s natural to put your trust in somebody who claims to be an expert and to believe that the advice you received was the best available. Sadly, there are many cases of clients being misled or provided with unsuitable advice. If you think this might be the case, or you’ve read this article and spotted potential red flags, there is help available from companies like Get Claims Advice. It is possible to pursue compensation without the assistance of an expert team, but the process can be convoluted, and you stand a better chance of winning with experienced professionals in your corner. When you seek advice, you should be able to enjoy peace of mind that the information you receive serves your best interests.
How can I make a mis-sold pension claim?
Nobody should have to worry about being left high and dry when they have contributed to a pension pot and saved throughout their working life. There may be risks associated with some types of pensions, but any potential risks should always be made clear. If you feel that you’ve been let down, you’ve made the wrong decisions based on the advice you were given, or you have been misled, it’s important to have the chance to fight back. An expert team that specialises in mis-sold pension claims can gather information and evidence and build a case that gives you the best opportunity of protecting your income moving forward and securing compensation. The first step to take if you do want to make a claim is making a call and discussing your individual circumstances. Advisers will ask you questions about your pension, the advice you received and where you got it from and draw up a plan of action based on the information you provide.
Summary
Mis-sold pension claims are becoming increasingly common. If you think that you might be in a position to make a claim, it’s well worth talking to experts about your circumstances and seeing if you have a viable case. Pensions provide security and financial stability once you stop earning a wage, and it’s crucial that consumers are given the right advice about pensions based on their individual situation.
