Becoming a victim of mis-sold pension can be the most hurtful thing after retirement. However, it is a problem that anyone can encounter as it is hard to forecast. If a pension introducer contacts you, the chances are that you will suffer a mis-sold annuity and might have to contact your pension provider. Fortunately, all these can be avoided by following the directions provided in this article.
What Causes Pension Mis-Selling?
Many instances can lead to pension mis-selling. They include:
- An introducer ambushing you with aggressive sales pitches
- An introducer not looking closely into your situation before providing a recommendation
- Being advised to transfer your money to a scheme you know little to nothing about
Mis-sold final salary has been an issue in the UK, and the problem only keeps getting more serious. Though everyone is susceptible to this problem, some measures can be taken to avoid it. However, it is advisable to start working on making a claim as soon as you become a victim of mis-sold SIPP.
How to Protect Your Money from Mis-Sold Final Salary
Your pension is the money that you spend the rest of your working life-saving. It is meant to give you a comfortable retirement life. Therefore, it is essential to protect it from a mis-sold annuity. Below are the things you can do to protect your money from mis-sold pension.
- Avoid transferring into your SIPP pension
- Make sure to seek thorough financial advice before investing in a scheme you know little about
- About aggressive pension introducers as they are only interested in personal gains if you end up investing
- Only invest in a project that you have studied and identified the chances of accumulating profits
- Do not fall for promises that sound succulent but with minimum chances of materializing
Note that if you are dealing with pension providers, you can benefit from impartial services ahead of your financial investment.
What If I Invest in the Wrong Scheme?
Once you have learned that your money has gone to the wrong hands, you should get claims advice right away. However, this process is normally bureaucratic, which is why you should avoid pension mis-selling at all costs. Placing pension claims is usually always successful, but it is time-bound. If you are trying to place a pension claim, make sure to do so at least six years after you learned that you mis-sold a pension.
How to Make a Mis-Sold Annuity Claim
Trace the company that fed you with wrong information about a given investment. If you find them, draft a formal letter informing the person in charge of your predicament. Let them know that they misled you and are looking to be compensated. You might be lucky if they accept their mistakes and promise to compensate you within a given duration.
If you trace and learn that the company no longer exists, there is still a channel that you can follow. Get in touch with FSCS, and you will be compensated for your lost money. However, this process is always marked with lengthy investigations and heavy paperwork. But in the end, you will be given back the money.
Final Thoughts
Mis-sold SIPP is an issue that is encountered by many individuals trying to invest and make more money after retirement. You can avoid this problem by being keen on details whenever a pension introducer approaches you. But they can still device smart plans to dupe you into making a bad investment. In case it happens, follow the procedures indicated above. Note that you must get claims advice before moving onto the next procedures.
