For many savers, their pension is their largest investment and second largest asset after the family home. The income generated from your pension has to last you through your later years, after you’ve retired, and so the effects of financial mis-selling relating to your pension can be devastating.
If you were sold a pension product or service and received misleading information, or you were advised it was appropriate for you when it wasn’t, you may be entitled to claim compensation for your mis-sold pension.
When Has a Pension Been Mis-sold?
- You were sold a pension that was not right for your circumstances
- You weren’t warned that your payout wasn’t guaranteed
- You transferred out of a final salary scheme when this wasn’t appropriate for you
The first of these is a very common situation, whereby you’re sold a pension product that doesn’t suit you for a particular reason. These reasons may include:
- The product didn’t match your attitude towards risk
- The product didn’t was not appropriate for your level of experience in investing
- The fees and charge arrangements weren’t made clear to you or advice on the arrangement was misleading
- You didn’t understand the advice you were given
The second of these relates to the returns generated from the pension scheme you were signed up to. Particularly in relation to transferring out of a final salary scheme, and into a stock market based scheme, like most other pension products now offered.
If you took advice on transferring out of your final salary pension, you may have found that your pension is at risk of, or has already, turned out smaller than expected. Final salary schemes are often very favourable pension schemes, with little or no risk, and carry a guarantee. This means that the vast majority of people who have access to one are better off staying in it!
However, of those employees who received financial advice it is anticipated that 55% are switching out of final salary schemes. According to the Financial Services Authority (now Financial Conduct Authority) the value of final salary schemes could have been understated by up to as much as £20 billion across the UK.
Want To See If You Can Make A Claim?
Simpson Millar LLP is a consumer based law firm with a history of experience in financial mis-selling.
Cases involving financial mis-selling require knowledge of the financial regulations and complaints process. There are rigid rules that financial institutions and their staff are obliged to adhere to, and at Simpson Millar LLP we are able to utilise this knowledge together with our client driven service, to give your case the best chances of success.