Mis-sold pensions are wrongfully purchased annuity. In most cases, it is a result of the pension advisor not giving adequate information, or not considering the health condition and situation of a client. The issue may also come up if the buyer does not carry out appropriate research and falls for the first option brought to the table. The problem may either be intentional or a mistake on either side of the party.
Signs that You May Have Been a Victim of a Mis-sold Pensions
One of the easiest ways to know whether you have been mis-sold a pension is if the terms and conditions of the pension were not clearly explained to you. It is the role of a financial advisor to explain the terms and conditions of a pension plan. It is also the role of the advisor to give you a breakdown of the crucial details before allowing you to read the final document. It is easier for a client to understand the contents of the document after it has been explained to them. Failure to do so will result in a mis-sold pension. You may also be a victim of this issue if you were not told about the charges of the particular pension scheme.
Another sign maybe if your financial advisor was not experienced. Some advisors claim to have experience when it is not valid. It may result in a client buying a mis-sold pension. The blame lands on the advisor since most clients do not have the know-how to predict such an issue. It is, therefore, vital that you always seek financial advice from a well-experienced expert. Adequate research will help you make the right choice.
Most individuals are persuaded to transfer their money from a workplace pension to a different kind of pension plan. In some instances, this may be a good move. However, most of the time, it is an ill-advice. For individuals like rail workers, teachers, and other social service employees, this is the wrong move, hence a mis-sold annuity.
If your pension advisor recommended a pension with a broader range of risks than you were prepared for, you might also have purchased a mis-pension. A pension with lesser risks may also count as a mis-pension. It is therefore always wise to choose a plan where your money is protected, and there are fewer fluctuations.
Claiming mis-sold pensions
You may initially have to get claims advice from a professional before deciding on what to do about the mis-sold annuity. Getting claims advice will help you know the procedure of making a claim.
In most cases, the first step is to communicate with the pension plan provider. You may have to identify the party that is to blame for the mis-sold annuity before doing so. Once you have this information, you can now make a claim. By making a claim, you have to provide information on why you believe that the pension was mis-sold. Using a third party may come in handy at this point.
A financial expert or claims expert may help you push the company into providing details on your plan, which can be used to your defence. The decision on whether to agree on the compensation or not lies on the pension provider based on the information you provide. However, when worse comes to worst, they may be forced to pay the compensation.
Bottom Line
The situation behind the mis-sold annuity helps to determine the procedure. In severe instances, you may have to go through the pension provider, the ombudsman, pension advisory service to get claims advice, and the pension protection fund.