People have transferred their hard-earned money into investments that often are unsuitable and sometimes worthless. This often leads to a huge loss in an individual’s pension funds. This loss has a significant impact on individuals often meaning they have to work for many more years to make up the shortfall. People feel angry and frustrated that they were ‘scammed’ and don’t know who to turn to.
Mis-sold pensions include any pension scheme where you were persuaded to invest money from your safe investments. These pension transfers were often risky or unregulated but gave promises of high returns for your retirement. There are 4 types of mis-sold pensions:
- Small self-administered scheme (SSAS)
- Self-invested personal pension (SIPP)
- Final salary transfers
- Occupational pension scheme (OPS)
The average Financial Services Compensation Scheme claim is £40,000!
These pension schemes were originally designed for those who work in small companies as it allowed them to run their own scheme for employees. The schemes were often set up to get around regulatory loopholes.
If you can provide proof that a regulated financial advisor incorrectly advised you to move to a SSAS you may be able to make a claim.
Although these can be a good option for people as they give you more control, the high-risk and underperforming investments that attract high annual charges often mean they cannot be sold on. Complaints are made against both the financial advisors and the SIPP operators.
Often an IFA would approach people to offer a free pensions review. They would then persuade them it would be a good idea to move to a SIPP without giving the full facts about the investment which was often linked to property.
Final Salary Transfers
This term is used to describe the process of leaving a Defined Benefit Final Salary Pension Scheme (set up by your employer) and thereby giving up the guaranteed benefits this provides. By giving up the guaranteed benefits you gain more control over your money and how you invest it, however, this is a complex are of financial planning. If you have been wrongly advised to do this you may be entitled to compensation.
Occupational Pension Schemes
These schemes fall into 3 main categories: Defined Benefit Schemes; Defined Contribution Schemes; and Cash Balance Plans. Occupational Pension Schemes are set up by employers and are well regulated. However, if your scheme was set up by an unregulated entity you could be entitled to claim.
If you have been mis-sold a pension, get in touch so we can start your claim today.
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