If you want to enjoy a healthy retirement, that is free of money worries, then you need to start saving early. This will always be true because it really does take time to build up a nest egg. The problem with knowing this is that it makes it easy to fall victim to mis-sold pensions. This is something that happened to many in the past. In the hurry to ensure they would have a healthy income throughout their retirement they went to a pension introducer who gave them wrong advice and introduced them to a mis-sold pension.
What are mis-sold pensions?
A mis-sold pension happens when a customer visits a pension introducer and is sold a pension product that is unsuitable for their needs. When you purchase a financial product, whether that is a SIPP, SSAS or a defined benefit pension scheme, your financial adviser should make sure that they tell you everything that you need to know about it. They need to make it abundantly clear where a product might not fully meet your needs but many fail to do this because of course, they want to make a sale. When this happens a case of a mis-sold pension could be instigated. If you think that you might be a victim of this you could get claims advice today, you might well be owed some money.
Common Mis-sold Pensions
SIPPs or Self-Invested Pension Plans are the most common mis-sold annuity. These schemes are set up, mainly to prop up investments that are considered high-risk, perhaps because they are under-performing. If your financial advisor didn’t talk to you about the risk involved in this type of product then it might be that you could make one of the hundreds of SIPP claims that happen on an annual basis.
A SSAS or Small Self-Administered Scheme is another type of pension that is commonly mis-sold. When it comes to annuity claims, many find they have a case with this type of pension because it is often used to prop up risky investments. If your advisor convinced you to perform a final salary pension transfer into this type of scheme, it might well be that you have a mis-sold annuity case.
A QROP is a pension designed for those looking to move overseas after they retire. Many people have been mis-sold this type of pension, however, because they were promised a cash advance once the pension transfer was made upon retirement. What they weren’t told, however, is that this attracts a 55% tax charge to the HMRC. If you have been sold this type of pension, it is important that you get claims advice as soon as possible.
Defined Benefit Pension
A defined benefit pension is usually offered by your employer but as an occupational scheme can be run by an unregulated entity. If you believe this to be the case with your scheme, it might well be that you could start an annuity claims process.
Final Salary Pension
Final salary pensions are usually offered by employers and provide investors with an income based on the final salary that they were earning before retirement for the rest of their lives. It is the most popular pension for this reason because it really does provide that healthy income that we all want. Many were convinced wrongly, however, to perform a final salary pension transfer. This often reduced the income that an investor could enjoy retirement, yet the advice given did not explicitly say this.
If you feel like to have been mis-sold a pension product, you are really not alone. There are thousands of SIPP claims or claims against other pension products happening every year. Don’t be afraid to reach out and check if you are owed anything.