The Bad Side of Having A Mis-Sold Pension & How to Fix It
If you are getting close to retirement you may start thinking about transferring your pension pot to a new scheme. Before you make any changes, you should be aware that many companies try to scam pensioners. Usually by drawing them into schemes by mis-selling final salary pensions.
Mis-sold pensions mostly occur as a result of an advisor not providing enough information. This especially occurs if the client takes the first offer on the table without doing research into pension schemes.
Are You A Victim?
If you want to enjoy a stress-free retirement then a financial salary pension is essential. These financial services involve a lot of money, and that is why you risk falling into a mis-sold pension when asked to transfer to a new scheme.
Some people find it beneficial to transfer their pension, but many people have been misled by the negligence of an advisor, or false claims. One of the clearest signs of pension mis-selling is if the terms and conditions of the pension are not clearly explained.
Advisors for financial services must explain the terms and conditions before the client makes a choice. Pension mis-selling can also occur if the client was not informed about the charges.
Most people are advised to transfer their money from a workplace pension to a self-invested personal pension scheme. In some instances, this may be a good move, however public sector workers may not benefit from a transfer and can be mis-sold annuity.
How To File A Claim Afterwards
You will have to ask yourself if your new pension scheme matches your “critical yield”. Also known as the return of investment that must be completed to receive retirement benefits.
You can use an online critical yield calculator to determine this value, but if you are on the losing side, then you must realize something is wrong with your pension transfer and you were most likely mis-sold a pension.
If your advisor did not thoroughly go through all the terms and benefits of your pension transfer with you, he may have purposefully been financially mis-selling to you.
Making a Claim
Before filing a claim, it is best to get claims advice from a professional. The first step would be to get in contact with your pension provider. Then, determine who or what was the cause of the mis-selling.
Once this is done, you can file a claim. You will provide information on why you believe the pension was mis-sold. Using a third party like a financial ombudsman service will be beneficial.
Using a Financial Ombudsman
If your financial advisor rejected your complaint regarding pension mis-selling, then you can turn to the Financial Ombudsman or another financial conduct authority to make a claim.
Going to the ombudsman may seem daunting, but you can get specialists to help you through the process. Financial experts or a claims management company can help you get more information regarding your plan.
They can also show you how to use it in your defense to make a claim. The pension provider will make the final decision to agree to the compensation.
Finding out how to make a mis-sold pension claim can help you get back thousands of pounds. If you think you are entitled to a claim, seek professional help.
Each case will be different, and your situation will determine the procedure for a pension mis-selling claim. In the most severe cases, you may have to go through the ombudsman. Pension protection fund, or pension advisory services to help you make a claim.