No Win No Fee Pension Claims
Mis-sold pensions is the biggest plague in the country’s financial sector today. Employee disenchantment played a huge role in helping scammers and financial advisers lure retirees into unregulated collective investment schemes (UCIS)
Without any legal backing if their investments go south, tens of thousands of pensioners lost a huge chunk of their money. In some cases, retirees lost everything they worked for to scammers.
Financial education is an important part of investing. Placing money in self-invested personal pensions (SIPPs) is a form of investment. In saying so, it pays to know how investing money works, and here’s a primer.
The simplest example of investment is this: you give money to someone to buy supplies. Then, this person sells the supplies at a price a notch higher. He decides to keep selling, getting money for buying supplies from you and other person. He promises to return your money plus interest.
The person who is selling has an investment vehicle. As his sales improve, so does the profits he makes. In turn, the interest you place once your money returns becomes higher.
Regulation is important. If the investment vehicle is poorly performing, the man will have deficits and have no means to return you investment. With an IOU note, he will promise to perform better and give you your dues. The other individual who keeps track of IOU notes is the regulator.
Without them, you have no legal arbitration to work on your behalf when things go south.
The businessman you trusted is not the only one who makes business work. There are others who create usable and sellable things from their ideas. There are also those who let people in spare houses they create for the purpose.
Each one of them can turn a profit. However, each one of them can also turn a deficit.
Therefore, investing an amount in each of them will help you offset your losses from one businessman to another.
Most SIPP investors use everything when they are compelled of high returns. This is not a good investment practice — and the huge number of pension mis-selling claims figures proves it to be true.
Financial advisers take advantage of their knowledge and education to lure employees into pensions. Playing on the employees’ emotions, they highlight the life-changing speculative returns of the investment.
Advisers have an excellent industry understanding. However, their advice can sometimes become a bit awry.
Considering this, you can say a wise investor will look at the bigger picture. They will ask about the investment vehicle’s projected performance in five years. Then, they’ll ask again this time about its speculated 10-year performance.
In addition, the investor will ask for supplementary data to serve as evidence to the claims. Financial advisers will have no choice but to secure these details once asked.
Trust only data and good sources when evaluating SIPP investment vehicles and any investment ventures in particular.
Lastly, just like starting a new business, you need to have enough money to live on for at least a year or two. Your pensions fund can cover more than 10 years of your lifespan.
If you have a clear projection of the SIPP’s investment vehicles, then you can set aside an amount enough to see whether the vehicle will improve its performance. In planning this budget, include the possibility the vehicle will fail and leave an amount allowing you to live without fiscal hassles and invest again.