No Win No Fee Pension Claims

How were personal pensions mis sold?

The sad truth is, two million people in the UK were mis sold Self Invested Personal Pensions (SIPPs). The good news is, there’s a £120m pot of cash been set aside to refund you if you were mis sold, and all you have to do is claim.

What is a SIPP pension?

Self Invested Private Pensions (SIPPs) were introduced in the late 80’s by the then government to give people more options on saving money for retirement. At the time you either had a private pension or contributed to an occupational scheme. SIPPs allowed you to transfer your existing pension to an investment product, giving you the choice of what you invested your savings in.

What went wrong with SIPPs?

SIPPs were not inherently a bad, but some of the advisors that sold them were, which is why an estimated two million people were mis sold a pension plan. The mis-selling usually occurred due to a lack of advice from the independent financial advisor, meaning hard working people didn’t know what their money was being invested in – they were just promised big returns.

The 6 ways pensions have been mis sold:

1. You were told to transfer your pension

If you had finished working with your employer and needed a personal pension you may have considered a SIPP. Your advisor may have legitimately suggested it, but if they also advised that you transferred the money from your former employer's scheme into a personal pension, then you may have been mis sold.

This is because taking the money out of your employer’s scheme would’ve meant you lost extra benefits that you were eligible for.

2. No information and no comparison

As with any transfer from one financial product to another, the person or company advising you should make everything clear and explain what you’re gaining and losing by moving your money. This is especially important with pensions, but many Independent Financial Advisors (IFAs) didn’t make it clear how the SIPP would compare to their existing pension plan.

If your IFA didn’t compare returns projections for the two schemes before you signed up, you may have been mis sold a pension.

3. They didn’t check your situation

Your advisor should’ve checked your financial situation, retirement plans, income and any health and medical issues before advising on a SIPP. If they didn’t, your plan may not fit your circumstances, making it either ineligible or not inline financially with your future goals.

4. You were advised not to use your employer’s scheme

When you originally sought advice on which pension to choose, your IFA should’ve made it clear that employer's schemes are almost always better for your pension pot than SIPPS. If they didn’t then you may have been mis sold.

5. You weren’t able to compare personal pensions

Your IFA should’ve advised you on all the options they deal with, then given you the time to do your own research in the marketplace. If you weren’t given the opportunity to shop around or were pressured into their recommended plans, you may have been mis sold.

6. You were advised to leave your employer’s scheme

The idea behind an IFA is that if you are considering a SIPP, they told you the pros and cons. What they shouldn’t have done is advise you to leave your employer's scheme. Especially if you weren’t leaving your job and would still be making contributions through your wage. If your advisor recommended you leave your employer’s scheme, you may have been mis sold.

Start your no win, no fee claim

Now you know all the ways you may have been mis sold a pension. To know for sure if you’re owed thousands of pounds in pension redress, start a no-win no-fee claim today by filling out our quick form.

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