Pensionpersonal finance

Mis-Sold Pension and You Didn’t Even know It?

Mis-Sold Pension and You Didn’t Even know It

Your pension is one of the most crucial investments you can ever make. You have worked hard for your money and deserve to get the best advice from the best financial experts. If you get bad advice and put your money in the wrong project, you will be a victim of mis-sold pension. However, most individuals are still not aware of what to do in case they fall victim of mis-sold pension. This piece tends to clarify whether you can make mis sold annuity claims and how to go about it.

In case you are a victim of mis-sold pension, you should get claims advice right away. If you suspect that your pension was mis-sold, get in touch with professionals, and they will assess your case free of charge and give you a way forward.

What is a SIPP Pension?

Also known as a Self-Invested Personal Pension, it involves a person transferring their defined benefit pension into risky investments. These pensions usually have a lot of risks because the chances of your investment decreasing or increasing are 50-50. This means that you could get less than the amount that you invested.

With this type of pension, you are allowed to invest your money in whichever way you choose. These arrangements are meant for seasoned investors who know how to manage their own funds and change their investments regularly.

How to Identify Mis-sold pensions

If you have made an investment in a pension scheme and suffered direct loses, then you might have grounds for a mis-sold annuity, and you will be able to make annuity claims. Here are the determinants of mis-sold pensions:

  •  Unexplained fee – You were charged additional costs that you know nothing about
  • Investment failed- You were promised huge returns within a given duration which did not materialise
  • Unsuitable schemes- You were advised to make final pension transfer to SIPP when they knew this was not what you needed
  • Pressure selling- Your advisor employed aggressive techniques to lure you into making a final salary pension transfer, so you didn’t have a choice

Is it Possible to Make a Mis-Sold Annuity Claim?

Whether it is your SSAS pension, QROP, or defined benefit pension that got mis-sold, you can always make a claim. Though the process is a bit lengthy and complicated, you can always use the right channel to get your money back. Once you get claims advice, you can look for the organization that lured you into making a bad decision and then open a case with them. Draft them a letter stating that you believe they influenced your bad investment decision and are looking to be compensated. If they admit to their mistake and agree to pay, then you are all set.

What if They Refuse to Pay?

In some cases, after pension mis-selling, the company will agree to your SIPP claims, but they might be slow to pay you back. Worse still, they might choose to offer you something much lower than what you expect, even after approving your SIPP claims. If this happens, you should seek professional advice. There are experts in final salary pension transfer who will listen to your case free of charge and advise you on what needs to be done.

Note that your case is time-bound. This means that you need to start following up as soon as you learn that you were mis-sold a pension.

The Final Thought on Pension Mis-Selling

Cases related to mis-sold pensions have become quite rampant. They cover all sorts of pensions from QROP, SSAS, to defined benefit pension. To avoid pension mis-selling, make sure to check the reputation of the organization trying to advise you, and take time before having your mind made. While it is possible to make mis-sold pensions claim, the process can be long and may need a lot of documentation. There are bodies out there looking to help you process your SIPP claim.            

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