Wondering if you’ve been mis-sold a pension? Here are 5 signs that may be the case.
If your financial adviser failed to properly explain the terms and conditions to you, this could be a sign that you were mis-sold your pension. After all, the last thing you want is to take out a financial product without fully understanding the small print. Your financial adviser should have highlighted the most important parts of the terms and conditions before supplying you with a
copy of the document in full for you to read yourself.
Consumers tend to seek financial advice because they don’t have the financial knowledge required to make large and potentially life-changing money decisions without some guidance. As a result, turning to an experienced financial adviser for help can be an extremely wise move.
A good financial adviser will use years of experience and financial education to point you in the right direction of the best products for you. So if you took out a pension product on the recommendation of your adviser only to find out they weren’t as qualified or knowledgeable as they originally said they were, you may be eligible for compensation on the basis that you were
mis-sold a pension.
Some workers have been encouraged to move money from their workplace pension into a different type of pension scheme. Although every case is different, this could be considered bad advice and it may be the case that the worker would have been better off keeping their money in their employer’s pension scheme.
Workers most commonly affected by this type of pension mis-selling include civil servants, railway workers, teachers, police officers, firefighters, NHS workers and those in the armed forces or blue chip companies. Often, these workers are advised to transfer their pension into what is known as a ‘money purchase scheme’.
Some pension holders have been encouraged to purchase a specific type of pension only for their adviser to fail to notify them of associated fees and charges. Sometimes this can leave people paying more money in costs than their pension earns.
Some people assume that if their pension or investments underperform, this automatically counts as mis-selling. However, in reality, an underperforming pension has only been mis-sold if the adviser didn’t prepare their client for the risks. Some investments are unpredictable by nature and favoured by those with a high tolerance for risk. However, if you want to play it safe, avoid fluctuations, and ensure your money is protected (to an extent) a high risk product won’t be suitable for you.
If your financial adviser recommended a product to you and failed to warn you of the risks involved, this could be considered mis-selling. You might also have been mis-sold your pension if your adviser promised a specific outcome that was not achieved.
This list is certainly not exhaustive and if you think you’ve been mis-sold a pension, please get in touch with the team at Pension Justice. We can help you determine if you’re a victim of pension mis-selling and if you are, we’ll do everything we can to fight for compensation.