Hundreds of thousands of Brits who have invested their savings into underperforming pension schemes are being encouraged to find out whether they were in fact mis-sold their pension.
Countless people have been encouraged to transfer their pension savings into high risk or underperforming schemes, often with the promise of “guaranteed returns.”
In some cases, victims of these mis-sold pensions and investments have lost thousands of pounds that they’ve worked hard to save over the course of their careers.
Often, victims are contacted by scammers via phone and encouraged to pour their pension savings into everything from storage pod investments to overseas property.
Not only are people falling victim to outright scams, some are being mis-sold pensions that are either completely unsuitable or haven’t been properly explained to them.
Now, thanks to the introduction of a special government fund worth £120 million, many of those who’ve been affected by pension mis-selling could receive thousands of pounds each to compensate for their financial loss.
The exact amount each victim receives will depend on the severity of their individual case, the amount of money they lost, and the impact the scandal has had on them.
Thanks to the £120 million fund managed by The Financial Service Compensation Scheme, a maximum of £50,000 is currently available for each eligible person. But this figure is set to rise to a maximum of £85,000 by next April.
The Financial Ombudsman, however, have the power to raise the compensation ceiling even further and award up to a maximum of £150,000 in some cases.
SIPP mis-selling has become so prevalent that experts predict the government’s latest move could result in a financial compensation ‘tsunami’.
Some experts have likened the surge in mis-sold pensions to the PPI scandal, with latest estimates suggesting the cost to the Financial Services Industry will be around £10bn.
If you suspect you’ve been mis-sold a pension, please get in touch with our team. We’ll work tirelessly to fight for compensation and ensure you get the justice you deserve.