Not all Self Invested Personal Pension Schemes (SIPPS) are bad. Back in 2015, George Osborne (the Chancellor of the Exchequer at the time) brought in some major reforms to the way that pensions worked. Before these reforms were put in place, retirees used to take the lump sums wrapped up in their pensions on their retirement and buy annuities with them. An annuity is a form of insurance that gives investors a regular monthly income, the problem with annuities is that the amount of the monthly payments can vary greatly.
Changing the pension landscape
Mr Osborne changed the pension landscape in one fell swoop. He labelled his reforms as a pension’s revolution, and in many ways, they were. They gave people of 55 years-of-age and over the right to do with the lump sums wrapped up in their pension as they saw fit. Not only could the public do with their pensions savings as they wished, but there was also a free government-run advice service set up.
Some years before the pension reform, in 1991, SIPPS first became available. These new SIPPS gave people the freedom to invest their private pension funds in whatever they wished subject to certain restrictions imposed by HM Revenue and Customs.
The idea was an excellent one in principle, as were the reforms of 2015. However, there are always two sides to any coin, and while people had this new freedom, it also opened the door to fraudsters.
Take a look at our recent article here that discusses the signs you may have been mis sold a SIPP.
Enter the pension fraudsters
Unfortunately, fraudsters always sound very plausible. That’s why so many intelligent people are caught out. Many people fell foul of taking out a mis sold SIPP that they were told would out-perform other investments or savings opportunities.
Being robbed of your pension savings is not a new thing. Pension scandals have been going on for decades, and many people have irretrievably lost their money. But if you are the victim of pension mis sold SIPP fraud there is a way of potentially getting all or some of your money back.
In many instances, people took out a mis sold SIPP having not been advised that the investment would be made in high-risk ventures or stocks and shares. In some cases, people may have even been promised certain guaranteed returns.
Nothing to lose with our no-win-no-fee promise
If you are one of the many people who have been on the wrong end of a mis sold SIPP, you should contact us here at Pension Justice. Call our expert, knowledgeable team on 0800 014 8275 and speak to one of our friendly advisors. We work on a no-win-no-fee basis, so you have nothing to lose. Why not contact us today?