The UK is currently in the middle of a pension mis-selling scandal that could be one of the biggest financial scandals ever seen. In the past two years alone, the number of people in the UK claiming mis-sold pension compensation has more than doubled.
As a result of mis-selling pensions and high-risk investments, the reputation of many trusted brands has been left in tatters. Questions are being asked as to how big this scandal actually is. When you factor in the sheer number of people who’ve been mis-sold pensions, and the amount of money involved, the results are bewildering. It’s no surprise that it’s estimated to be even bigger than the PPI scandal.
So what is the current extent of the UK pension mis-selling scandal, how much compensation is available, and does it look like the whole fiasco is improving? At Expert Pension Claims, we’ve seen a big increase in the number of people seeking compensation for their mis-sold financial products. That’s why we want to shed a light on this issue and address how we can help!
What is the pension mis-selling scandal?
The scandal centres around people who have been mis-sold SIPP pensions and defined benefit transfers, which stemmed from a few unregulated pension investment areas. Many UK consumers were given poor recommendations about a pension product from credible financial advisors, but what they didn’t know was that many of these financial schemes were unlawful.
Unfortunately, it’s not uncommon for financial advisors to use certain tactics to make a sale, such as not properly explaining the terms and conditions of purchasing a certain product. In the case of the UK pension mis-selling scandal, these tactics have left thousands of people without their much-needed retirement funds. Read more about the top signs you’ve been mis-sold a pension.
Just how big is the UK pension mis-selling scandal?
How big is the UK mis-selling scandal? The figure of mis-sold pensions that have been either poorly invested, advised, or managed by some financial advisors is estimated to be around £10 billion.
It’s also estimated that this scandal has affected thousands of people across the UK, so if you’ve ever been mis-sold a pension then it’s likely you’re owed up to £150,000 in compensation as a result.
A recent investigation carried out by the Financial Conduct Authority (FCA) found that less than 50% of the advice given about pension transfers was suitable. That means that there are also thousands of people in the UK who can claim compensation as a result of being given poor advice from financial advisors.
The sheer gravity of the scandal continues to grow, with more and more victims claiming compensation every year.
How much compensation are mis-sold pension consumers claiming?
Five years since the scandal emerged and the victims of mis-sold investments are still being urged to check if they can reclaim some of their money. They can claim up to £150,000 but the average payouts tend to be:
- £25,000 for mis-sold private pension
- £50,000 for mis-sold final salary pensions
Get in touch with us to find out how much you could claim.
Who qualifies for compensation?
As we explained above, the mis-selling scandal covers quite a few bases when it comes to pension, SIPP, or investment products. If you fall in one of the following three categories, then it’s likely you’ll be entitled to some compensation:
- If you’ve been given poor advice about a certain type of investment or pension product.
- If the risks were not properly explained to you when purchasing a certain product.
- You weren’t given the correct information and ended up with a pension or investment that wasn’t right for you.
Here’s what you should do if you think you’re owed compensation
If you think you’re one of the thousands of people owed compensation from the pension mis-selling scandal, then you need to act fast. There’s a time limit of six years from when the product was sold to you or three years from when you noticed that you had been mis-sold.
Expert Pension Claims is a claims management company with a focus on helping people to claim against their mis-sold pensions, and we have a strong track record in helping people get their money back.
To begin the process of claiming compensation for bad pension advice, simply get in touch and we’ll be happy to help. Be sure to stay in touch with our blog for industry news and handy pension guides to keep up to date with the UK pension mis-selling scandal.