Are you one of the thousands of UK residents who have invested in a pension scheme only to realise it’s underperforming? To find yourself in such a situation can be frustrating and heartbreaking. There are, however, things you can do to recoup some of your lost money. It’s going to pay you to get claims advice for your mis-sold pensions claim. This article is also going to provide you with some other options relating to SIPP claims and annuity claims.

How to Tell Whether Your Pension was Mis-sold

There are several different ways your pension transfer can be mis-sold. Transfers to a tax-avoidance scheme are illegal and usually a scam. It’s also possible you might have been convinced to transfer from your workplace or private pension, into a high-risk UCIS (Unregulated Collective Investment Scheme). The advice given to move your pension funds out of a defined benefit pension might have been wrong. Keeping it where it was could have been a better option. Other mis-sold pensions examples include:

  • Cold call pension advice
  • When a financial advisor fails to explain all the risks
  • Not receiving a full explanation of the fees and charges
  • Being advised your mortgage would be paid off by your pension

When you get claims advice, you receive a summary of these and several other scenarios.

Claims are Time Sensitive

One crucial thing for you to remember is that you must make your claim within six years, from the transfer date of your pension. It doesn’t matter whether you’re making SIPP claims, annuity claims, or are worried about final salary pensions. The time limit is generally six years.

How to Make Mis-Sold Pensions Claims

A couple of options are available to you if you want to make a claim.

  • The DIY Option

It is possible to make a claim yourself. However, there is a lot of work involved, and you need to be determined. Your first step is to find and contact the scheme provider. You need to make contact with the organisation or person who advised you to transfer your pension.

Once you’ve established who you need to contact, you get in touch and make your case. Explain that you believe you were mis-sold your pension and you want compensation. It’s very likely the company will try to wriggle out of any responsibility. However, if you’re sure your pension was mis-sold, you have to stay firm.

You can get claims advice online if at any time you feel stuck. The Financial Service Compensation Scheme, for example, currently manages a fund that can pay a maximum of £50,000 in compensation, if you’ve invested in an underperforming pension scheme. As a last resort, you have the option of contacting the financial ombudsman.

Work with a Specialist Firm

Many specialist firms can help with a final salary pensions claim, or any other type of pensions claim. The process is far more straightforward. It’s a case of providing the firm with all the necessary information and letting them handle the claim on your behalf.

You have a higher likelihood of success, and there’s less work for you. There is, however, a downside. Using the help of professionals is going to cost you. Although, many experts offer their services on a no-win, no fee basis. This option completely removes the financial risk of making a claim. Still, you would get a smaller settlement should the claim be successful.  

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