A nightmare that no retiree wants to ever live through is being mis-sold a pension. Yet, the sad truth is that too many unsuspecting citizens—both young and old—can fall prey to such problems.
If you stay on top of the news, chances are that you’ve heard of older citizens and aspiring investors alike falling into a pit of financial difficulties after being misled by a pensions adviser with ulterior motives. Considering that these mis-sold pensions add up to a £40 million build-up of compensation payouts, it’s safe to say that this is no small issue.
With the Financial Services Compensation Scheme (FSCS) working overtime to take on the different cases relating to mis-sold pensions each year, buyers are forced to invest carefully.
Preventing yourself from becoming another victim suffering at the extent of deception is possible if you inform yourself of all the signs that you may be mis-sold a pension. If you want to ensure that your hard-earned money goes into the right place instead of waiting in the form of a compensation payout that takes years to get, here are a few signs to watch out for:
Sign #1: You’re dealing with an advisor that isn’t as experienced as they claim to be
Oftentimes, a telltale sign that you may be at risk of being mis-sold a pension can easily be spotted before all else if you learn about the true extent of your financial adviser’s experience.
Mis-sold pension cases are common in transactions that involve financial advisors that oversell themselves even though they don’t have the necessary foundation to give sound advice.
By taking the time to ensure that your chosen representative has a background in economics, law, mathematics, business management, or finance, you can ensure that you’re getting the right pension. Watching out for crucial certifications or qualifications granted by the Chartered Insurance Institute (CII) or the Pensions Management Institute (PMI) can help as well!
Sign #2: The terms and conditions of a pension weren’t explained to you
If you have a financial adviser that either rushed through the terms and conditions, deliberately avoided explaining them, or forgot to take you through them, then you are at risk of having a mis-sold pension.
Seeing that advisors are in a position of responsibility and trust by handling such a significant investment, it’s clear that you’ll need to have someone that upholds this same pillar of selling with integrity. Should you discover that the professional you’re dealing with is purposely withholding information, then it’s safe to say that you should take your money somewhere else.
Sign #3: Your financial advisor recommends that you transfer your pension from a workplace pension
Transferring your pension from a workplace pension scheme, in itself, is a move that rarely proves beneficial for your finances. In fact, it’s a red flag that indicates you may be in the process of being mis-sold a pension. Once your financial advisor starts dabbling into how taking your pension out of the guaranteed savings that workplace pension schemes provide, walk away.
If you’ve meant to put your finances in a safe place with the hopes of living out your golden years with more than enough to spare, then a possibility that you want to avoid is being mis-sold a pension. By watching out for the three signs mentioned above, you can keep your investments safe. In the case that you suspect you’ve been mis-sold a pension, though, you’ll need our help.
Having a bit of difficulty with reclaiming the full cost on any mis-sold goods or services that you’ve purchased within the last six years in the UK? Discuss your claim with one of our claim advisors today!