13 JUL 2021

Consumer Reclaim – Mis-Sold Pensions- What They Are and How to Avoid Them

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Mis-sold pensions have been on the rise these past few years, and it’s no longer a surprise to many. It already happened decades ago, and there was always a strong possibility for this particular piece of history to repeat itself. You may be wondering about this phenomenon and the issues regarding pensions, particularly about potential safeguards you need to put in place to avoid it from happening.

The truth is, people’s discretion and instincts to do the right thing are their only fundamental safeguards at this point, and whether they like it or not, they may fall into these misleading tactics if they’re not careful. 

If you wish to know more about mis-sold pensions and how to avoid them best, here’s a quick guide to follow:

 

What Are Mis-Sold Pensions?

In reality, not many people are aware of the true meaning of the concept of mis-sold pensions. Everyone knows what a pension is, which is essentially funds that one may receive after retirement. 

Mis-sold pension pertains to misleading or wrong advice given towards the pensioner to invest in a particular pension scheme that may only benefit the one who gave the advice. For the most part, these advisers are the financial experts who only care about making an easy score off commissions, not thinking about the well-being of their pensioners.

 

Have Instances of Mis-Sold Pensions Happened Before?

Yes, it has. Back in the 1980s, countless pensioners were misled to invest in personal pensions 

rather than occupational pensions. While the intention of doing this was first regarded as innocent and harmless, the primary purpose changed along the way, often only benefiting those who advised to gain a commission off the people they convinced. 

Back then, the core message of financial independence was urging people to invest in what they have and what they make, not looking forward to a much better future in the process. It is no wonder that the 80s incident was renowned as a scandal, and that very same situation is already happening right now. W

 

Why Is It Happening Again?

Remember when we said that its core message was all about financial independence? That core message never really disappeared throughout the years. It was even further motivated unto the people, with the budget announcement back in 2014, which said that all pensioners would have no limits whenever they would withdraw their pensions. 

They can withdraw it all any time they want, with no cap and no annuity. This implementation, of course, only led people to choose personal pensions once again and make the same mistake that many people before us committed.

 

Is There Something I Can Do to Prevent It?

For one, you should not accept advice from anyone claiming to care for your financials, or at least those who are only opening their services to you right now. 

Be mindful of the people you are going to deal with. If you’re going to need a financial adviser, choose one with all the good reviews and credentials to take you out of a financial slump without sacrificing your good pension in the process.

 

Conclusion

No one wants to be deceived out of their excellent pension, which is why people should be more careful when making financial decisions. If they think that they do not know everything about personal pensions yet, they should not shift towards that specific scheme. 

They should analyse their current financial standing, check the legitimacy of the adviser, and sort out their options first. After all, their pensions are their hard-earned money through many years of work, and if they’re just hoping to get a bad deal out of it in the end, they might as well not apply for one.

If you are hoping to reclaim your mis-sold pension SIPP, then we at the Consumer Reclaim are your top choice! We specialise in consumer mis-selling of goods, services, and insurance, and our services are the most exemplary that you will ever experience. Contact us for more information about our services.

 

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