You may have heard about mis-sold pensions in the news, or maybe you’ve heard about how a relative has been thrown into financial difficulties after being misled by a pensions adviser. According to figures from the Financial Services Compensation Scheme (FSCS), 2018 saw an accumulation of £40 million build-up from compensation payouts given to people who were mis-sold pensions.
However, what you often do not hear about mis-sold pensions is any kind of advice that could prevent you from entering into such a risky enterprise. So, that’s what we’re doing to do with this article.
If you think you may have been mis-sold a pension, there are things you can do about it. Here are the top signs to look out for, that you may have been mis-sold…
1. Your adviser isn’t as experienced as they said they were
A worrying sign for anyone taking financial advice from a supposedly experienced professional, not to mention people taking advice about their retirement fund. Make sure your adviser has, at the very least, a degree in either economics, business management, finance, law, or mathematics. This is the very least, so you’ll also want to check whether the adviser has passed any trainee programmes regulated by their company. Finally, look out for qualifications granted by the Pensions Management Institute (PMI) or the Chartered Insurance Institute (CII) – these are governing bodies whose regulations you can trust.
If you have already taken out a pension product on the recommendation of an adviser who, as it turns out, has given bad advice, then you may well be eligible for a mis-sold pension compensation claim.
2. The terms and conditions weren’t explained to you
It is the responsibility of your financial adviser to communicate the terms and conditions of whichever pensions product they are selling. They’re in a position of responsibility and trust and as such need to ensure that you’re fully informed before making a choice. If you’ve not yet made a decision and you feel like your advisor is withholding information, do a little research into pension mis-selling. If it has transpired, after having made a decision, that your pensions adviser neglected to explain any terms and conditions to you then you are almost certainly eligible to file a claim for compensation.
3. You weren’t made aware of certain pension fees and charges
As an additional note to sign two, if you weren’t made aware of any associated fees or charges then you may well be eligible for a compensation claim. The main issue in sign three is that these unforeseen fees or charges can result in a person paying more money than their pension earns.
4. Your adviser recommended a pension or investment that involved more risk than you were prepared for
Your pensions adviser must work with you to specify a level of risk that you’re comfortable with. If you find communication in this area is lacking, then you may be eligible for a mis-sold pension claim. Furthermore, if you have made a decision and then find that you are not comfortable with the level of risk then you may also be eligible for a claim.
5. You were advised to transfer your pension from a workplace pension
There are very few instances where transferring your pension from a workplace pension scheme is beneficial to you and your finances. If you have been advised to take your pension out of the guaranteed savings (plus benefits) that workplace pension schemes give you then there is a very good chance that you’ve been mis-sold. In this case, you’ll likely be eligible for a claim. Learn more about mis-sold pension transfers here.
Check your eligibility today
If you suspect that you are the victim of poor pension advice, get in touch with us immediately by calling 0161 968 0768 or filling in our quick enquiry form on our website to start your claim proceedings.