Payouts that were accumulated due to mis-sold pension transfers summed up to at least €40 million in late 2018. The problem with mis-sold pensions is getting even bigger. But what are you supposed to do if you fall victim to mis-sold pensions? If you think you have been mis-sold a final salary pension transfer, you can know what to do by reading on. It is caused by individuals making final salary pension transfer blindly.
How to Know You Have Mis-Sold a Pension
If you feel that you were told to invest in the wrong project, then you should organize an investigation into the matter. If you want to open a case, a team of professionals can help you at no cost. If you don’t have a case, then you need to start working on one if any of the below instances happened:
- The contract was commenced and you were influenced through a cold call. It is usually a red flag if someone comes from nowhere and offers you a great deal.
- The financial advisors did not take a keen look at your situation before making a recommendation. At times, the advisor will fail to evaluate your circumstances to see whether a certain deal is suitable for you.
- If you were asked to transfer into your SIPP pension without being provided with enough details.
If any of the things above happened to you, then you need to start working on making annuity claims right away. Most mis-sold annuity cases happen when you receive advice from pension introducers, but there is always a way out. After you get claims advice, you need to get in touch with professionals who will advise you on the way forward.
What Counts as a Mis-Sold Pension?
If you were asked to do defined benefit pension transfer while you were supposed to keep it with your initial company, then there is a good chance that you have been mis-sold a pension. Note that defined benefit pension can only be transferred after you have retired and received your cut from the former employer.
It is never a good idea to transfer funds from your workplace or SSAS pension into some scheme that you know very little about. This is how individuals lose their money and end up placing SIPP claims later on.
How to Make a SIPP Claims
Whether it is your SIPP or QROP that you were mis-sold, you can always make a claim. Once you have learned that you were misled by a pension introducer and that your QROP or SSAS ended up in the wrong scheme, you can start by drafting a formal claim to the organization or individual that advised you.
If you send them a letter stating that you are a victim of mis-sold annuity and that they influenced your decision, only two things can happen: they can admit to this claim and agree to refund you, or they can decline such a claim. If they agree to have caused your mis-sold annuity, then you are all done.
The chances are that they might be willing to offer you something lower than the amount that you had lost. If that is the case, you need to get in touch with the pension advisory service. You should start by dropping them a line on an email address or through a direct phone call. Though they mostly don’t provide thorough assistance, you can always get claims advice from them.
If the company that mis-sold your pension happens to have been dissolved or no longer exists, you can always get a full refund by contacting FSCS. They will look into your issue and provide a full refund if they learn that you lost money in a faulty scheme. However, this is usually a lengthy process that contains a lot of documentation.
The Final Word
Pension mis-selling is a problem that has been there for a long time. Before you make an investment as advised by a pension introducer, make sure to do your homework. Though there is always hope after pension mis-selling, the road is always bumpy, and a lot of paperwork and patience are always required before your annuity claims bear any fruit. A final salary pension transfer is something that should not be done unless you are certain of your next investment.