There is nothing more heart-wrenching and frustrating than having become a victim of a mis-sold pension. For the uninitiated, a mis-sold pension is any type of pension scheme that involves taking your money out of a safe account and placing it into a risky or unregulated investment. If you were convinced to invest your retirement money with a promise of high returns, in the long run, the chances are high that you were misled and have resulted in a devastating financial consequence.
Understanding the various forms of mis-sold pensions is the key to avoiding becoming a victim or filing a claim against the party responsible for your financial losses. In this article, we will share four types of mis-sold pensions you should be wary of:
- Self-invested personal pension (SIPP)
This pension option gives you the flexibility to decide on your own and the freedom to choose whom to invest. While it is a good option to take at first, problems arise when you put your money into a high-risk and under-performing investment. Unfortunately, some SIPP operators have been complained about due to their lack of due diligence. When confronted with this situation, you can file a claim against the financial advisor or SIPP operator you dealt with.
- Small self-administered scheme (SSAS)
SSAS is typically provided by non-regulated entities, such as sales agents, alternative product providers, and other operators. The problem, however, is that they often hold high-risk and unregulated investments. Yet, some unknowledgeable individuals take this route to avoid strict safeguarding regulations. If you aren’t aware of this scheme and have been incorrectly advised by a financial advisor, you can file a claim for a mis-sold pension.
- Occupational pension scheme (OPS)
In general, OPS is a pension scheme where your employer creates an account to help you save up for your retirement. This type usually entails three categories: defined benefit schemes, defined contribution schemes, and cash balance plans. For the most part, these scheme categories are well-regulated and are being practised by several employers. However, the problem is if your OPS is set up by an unregulated entity that can compromise the safety of your money and lead you to financial losses.
- Final salary transfer
A final salary transfer is a pension scheme where your employer offers to move your final salary to a new pension product. While this type of transfer is a good idea, some risks come with it, such as the possibility of losing your guaranteed benefit and money. If you have been ill-advised, then you can launch a claim for your mis-sold pension.
Conclusion
It’s worth knowing that you have the right to file a claim against a party for a mis-sold pension. Whether it’s a self-invested personal pension, small self-administered scheme, occupational pension scheme, or final salary transfer, you can make a claim yourself for free.
You can lodge a request directly to the relevant person or party, or launch it through the Financial Services Compensation Scheme, the Financial Ombudsman Service, and The Pensions Ombudsman. If all else doesn’t work out, you can seek the help of a third-party consumer reclaim company that can assist you every step of the way in the filling process.
Have you been a victim of mis-sold pension or have received unreliable advice from a financial advisor? Let our experts assist you! We help customers file claims for mis-sold products by explaining every step of the process and to ensure that our clients understand any offers or other correspondence that may be presented to them. Get in touch with us today!