Giving bad pension advice is a form of financial mis-selling, it’s as simple as that. Over recent months, the UK watchdog has expressed numerous concerns that thousands of people are wrongly being mis-sold a pension. This means that thousands lose out on getting the right retirement income that they are entitled to.
What is pension mis-selling?
To put it simply, pension mis-selling includes being given unsuitable advice about your pension scheme from your pension advisor. When it comes to talking you through your pension, advisors have strict codes of conduct to follow. For example, an advisor has to take into account any health and medical issues that you may have, as well as outline all aspects of your pension scheme clearly and extensively.
Therefore, if you feel that the advice given by your advisor wasn’t clear, or the scheme that was chosen for you isn’t right for your own circumstances – then you may be a victim of pension mis-selling.
Luckily, however, it’s quite easy to spot the signs of bad pension advice and claim compensation. This guide will outline some common examples of pension mis-selling, as well as what to do if you were ever mis-sold a pension.
What counts as bad pension advice?
Not being told how your new pension would operate
Unclear communication about your pension is one of the common forms of bad pension advice. When going through your pension scheme, your advisor should have given you a clear and detailed overview of how exactly your pension would work. They should also have run through how leaving a work pension scheme could impact you, and what benefits you could lose out on as a result of leaving.
Being told to go private after switching jobs
If you have moved jobs, then your advisor may have told you to transfer your existing occupational scheme to a personal plan. This suggestion in itself is not a bad idea. However, if your advisor has failed to mention that you could transfer your existing work pension to a new occupational scheme (especially one that is more financially viable), then this constitutes as bad advice.
Being told to switch to a private pension scheme
If you have been told to transfer to a private pension scheme that is paying out less than your company plan, then you have been given bad advice and are therefore eligible for compensation.
Being pushed to go for a particular plan
The job of a pensions advisor is to recommend the best plan based on your personal and financial circumstances. Therefore, if you feel that they were persuading you to go for a particular pension scheme that does not match your criteria, then this may count as financial mis-selling.
Did you know? A SIPP (Self Invested Personal Pension) is a common type of pension that people claim compensation for. Even though a SIPP gives you a higher level of control over your pension, there are risks involved in investing in one, and these risks are sometimes not based obvious to people.
What can you do if you think you were mis-sold a pension?
If you resonate with these examples and therefore think that you were mis-sold a pension, it’s so important to act quickly and contact an expert who can help you straight away. At Expert Pension Claims, our team has a track record of giving clients the best possible service, as expressed by our collection of testimonials. Fill in our claims form and one of our specialists will be in touch shortly to help you claim what is rightfully yours.