A government fund managed by The Financial Service Compensation Scheme has been set up to provide mis sold pension compensation to thousands of savers in the UK. The £120 million fund offers a maximum of £50,000 compensation per saver (due to rise to £85,000 in April 2019) – and in certain cases the Financial Ombudsman Service can award up to £150,000. If you feel you have been affected then seeking mis sold pension compensation could help you to get some money back.
High risk investments
Self Invested Personal Pensions (Sipps) were designed to provide individual savers with more pensions freedom. However, they have frequently created complex savings situations and some of those who were trying to use them to create a buffer for their future have been ripped off. Many people who chose to use Sipps moved money out of a regular pension scheme that would have provided a guaranteed income for life. Some have seen the value of their pensions significantly reduced – others have lost everything. The primary issue is the investments that individual savers have been encouraged to make, which were often unregulated and frequently incredibly risky.
An increase in mis sold pension compensation claims
There has been a significant increase in the number of claims for mis sold pension compensation over the past year. Many of these complaints have been related to the investments side of Sipps but others also concerned administration. More than 13,000 people have already received mis sold pension compensation for Sipp-related claims – you could be one of those to benefit from the £120 million government fund if you have a valid claim for mis sold pension compensation.
What kind of mis sold pension complaints are being upheld?
Often, cases for mis sold pension compensation are not straightforward and many people assume that they may not have a valid claim if their circumstances are not simple. However, a wide range of complaints for mis sold pensions have been upheld, including:
– Complaints about poor advice concerning the kind of scheme an individual was entitled to join, for example eligibility for an occupational scheme.
– Complaints against a provider claiming that an individual insisted on a transfer to an unsuitable scheme even when this went against professional advice.
– Complaints about compensation offers made that don’t follow regulatory guidance (and so are often lower than they should be).
What to do if you’re affected – claiming mis sold pension compensation
High pressure sales tactics, promises of high returns and a lack of clarity over the complexity of pensions can all lead to a mis-selling situation. If you have had this type of experience, your Sipp has dropped in value, or you believe that you weren’t provided with the right information to make a well informed choice then mis sold pension compensation could be available to you.
Claiming compensation is a simple process that will provide you with a way to cover any financial losses and make up for a bad experience.