According to the Financial Conduct Authority (FCA), as much as 69% of consumers have been wrongly advised to transfer their pension funds. This equates to a monumental two billion pounds of unsuitable transfer advice each year.

If you think you may have been mis-sold a pension, you will be happy to hear that you could be entitled to compensation.

Not sure where to start when it comes to mis-sold pensions?

Within the below blog, you will find out everything you need to know about mis-sold pensions, including:

  • What is a mis-sold pension?
  • What are the different types of mis-sold pension?
  • How does a mis-sold pension claim work?
  • How much compensation am I entitled to?
  • How we can help you to get the compensation you deserve

What is a mis-sold pension?

A mis-sold pension occurs when you have been given misleading or unsuitable advice before committing to a pension scheme. This could mean that you were promised a certain return on your investment that didn’t materialise or that you lost a significant amount, or even all, of your pension funds.

Fortunately, for people who have been mis-sold a pension, the Financial Services Compensation Scheme was set up in 2012 and paid out over £112 million for SIPP claims in 2017/18 alone.

Don’t worry, there is still plenty more money left in the pot if you were mis-sold a pension scheme!

What are the different types of mis-sold pensions?

If you think that you have been given bad pension investment advice and you bought or transferred to one of the below types of pension schemes, you may be able to make a claim for compensation.

Mis-sold SIPP pension claim

A self-invested private pension, or SIPP, is a particular type of personal pension that lets you hold investments until you retire. They differ from standard personal pensions in that you can choose to invest your money in a number of different investments, such as insurance company funds and commercial property.

If you invested in a SIPP and any of the below apply to you, you may have been mis-sold:

  • You were advised to transfer to a SIPP despite having a pension you were happy with
  • You were advised to transfer to a SIPP but were not fully advised on your investments
  • You were only advised to move your funds to a SIPP but given no other recommendations
  • Any FCA rules were broken, or you were given unclear advice
  • Your advisor used high-pressure sales tactics

Mis-sold final salary pension claim

Final salary pensions, or defined pensions as they are also known, are generally considered to be one of the safest options on the market. That being said, you could still have been given negligent advice if you were told to transfer to one of these, and you may have lost money as a result of this.

Signs you may have been mis-sold a final salary pension include:

  • You were informed that you would be better off transferring your pension
  • You were not given sufficient information before transferring

Mis-sold annuities claim

An annuity policy is where you are buying an income for life in your retirement. You invest a lump sum, and the annuity gives you a permanent income, in either monthly or yearly instalments.

These types of pensions can also be mis-sold, with consumers frequently being matched with plans that do not suit their financial needs.

Signs you may have been mis-sold annuity include:

  • You were not given all your annuity options
  • You wrongly received a standard rate
  • You were not informed of all the fees or charges
  • The annuity stops paying out when you pass away

What is a Mis-Sold Pension?

Mis-sold SERPs pension claim

SERPS, or state earning related pension scheme, was a government scheme that was created to give people more money in their retirement than just their state pension. The amount received was dependent on how much a person earned throughout their life.

Unfortunately, many people were wrongly advised on SERPs and were told to “contract out”, which meant their SERPs pension was given up in exchange for a private one.

You may be able to claim for SERPs compensation if:

  • You are over 45 years old (male) or 40 years old (female) when you contracted out
  • You were advised to contract out of a SERP pension between 1st July 1988 and 5th April 1997
  • You were earning over 10k each year

If you bought or transferred any of the above pension schemes and you believe you were misinformed or given negligent advice, you may be entitled to compensation.

How does a mis-sold pension claim work?

Although every case is different, you will often be able to form a complaint against your financial advisor or pension company. If this is not possible, perhaps because they have become insolvent, the Financial Ombudsmen Service or the FSCS should be able to help you get the compensation you deserve.

Even if the pension transfer in question happened many years ago, you still have a good chance of being able to make a claim if you were wrongly advised.

How much mis-sold pension compensation could I be owed?

The amount that may receive in compensation will be dependent on a number of factors. You could be owed hundreds, thousands, or even tens of thousands of pounds and the only way to find out is to start your claim.

How can we help you?

Here at Maple Financial, we work hard to ensure all our clients get the maximum amount of compensation from mis-sold pensions. It is thought that as many as one in eight people have been mis-sold a pension or investment product, and if you think you are one of them, don’t just sit back and do nothing.

We understand that it can be daunting to make a claim against a big pension company or financial institution, which is why we will do all the leg work for you. We have a wealth of experience in dealing with mis-sold pension claims and have helped thousands of people get the compensation they deserve.

Get in touch here today and enjoy a free, no-obligation chat with one of our knowledgeable and helpful advisors. We promise complete transparency when it comes to making a claim, so you are guaranteed peace of mind when you choose us to help you with your mis-sold pension claim.