Whether you’ve already made a claim for mis-sold pension compensation or you’re preparing your claim as we speak, it’s important to understand that there are limits when it comes to pension compensation. In this guide, we take a look at the FSCS compensation limits and what exactly that means for you.
What exactly is pension compensation?
Pension compensation is often claimed for mis-sold SIPPs (Self Invested Personal Pensions) and other pension products such as defined contributions OPS.
If you believe you were mis-sold your pension, you’ll be pleased to hear that the FSCS (Financial Services Compensation Scheme) has set aside money (£375 million, to be exact) to help people like you claim compensation for any lost pension investments.
Pension compensation limits 2020
The pension compensation limit depends on whether it was your pension provider or a pension investment that failed.
Pension provider failure
The FSCS can protect you from UK-regulated pension providers should they fail. The good news is there is no limit on compensation for such failures and they will cover 100% of any losses. However, this does not cover Occupational Pension Schemes (OPS).
Pension investment failure
The FSCS compensation limit for pension investments is currently at £85,000. This means you could be eligible for compensation up to this amount, depending on how much you paid into your SIPP pension investment and whether or not the investment was UK-regulated.
We understand this might sound complicated and overwhelming at first, and that’s why we’re here to help.
How do I know if my pension investment is eligible for compensation?
There are often a number of reasons your pension investment may be eligible for compensation, but the common denominator is being sold an investment that is not suitable for you.
- Pressured into investing?
- Not given the opportunity to shop around for other investment options?
- Retired when offered the investment?
- Unaware of the terms and conditions surrounding your investment?
- Unaware of certain fees or charges?
- Advised to transfer your pension from a workplace pension?
These are all common signs you were mis-sold your pension – and you may have a compensation claim backed by the FSCS and FCA.
If you believe your SIPP pension was mis-sold or you’d like more information on making a claim, don’t hesitate to get in touch with our experienced claims management team.
Getting started with your pension compensation claim
Here at Expert Pension Claims, our team handles claims like yours every day. Just take a look at our testimonials to see how we’ve helped individuals all across the UK claim back their hard-earned money.
After you provide us with some basic information about your mis-sold investment, we’ll be able to confirm whether or not you have a claim and can submit the claim on your behalf to your pension provider or adviser. They then have 8 weeks to respond to the claim, with a 2-week extension period available, after which you may receive compensation for your investment should it be upheld. Don’t worry if your claim is not upheld – we’ll then ask you if you’re happy for us to take your case to the Financial Ombudsman. Rest assured you’re in safe hands with the Expert Pension Claims team.