How to Avoid Being Mis-sold Your Pension

Background to Where it Started

The use of mis-sold pensions tarnished the reputation of the pension industry in the late 1980s and early 1990s. Millions of people who had been promised a pension but didn’t actually get one were instead offered an unsecured loan. Insurers were fined millions of pounds after they failed to identify and compensate savers who had lost out due to their negligence.

Some experts worry that pension scams may be back on the increase. This is partly due to the pension reforms introduced in 2015, which allowed people aged 55 and older to withdraw funds from their pension accounts without any restrictions.


Judge Dan Hinde

Learn What Mis-selling Is

Misselling occurs when a financial adviser or broker misrepresents the nature, scope and/or quality of their services to you. This can include misrepresenting your investment objectives, recommending unsuitable investments, failing to disclose conflicts of interest, providing misleading advice, and more.

What are some examples of misselling?

  • Financial advisers may recommend investments that they know will not perform well for you (e.g., high-fee funds). They may also recommend investments that have higher fees than other options available to you.
  • Brokers may sell unsuitable securities without disclosing this fact to you. Brokers may also fail to tell you about the risks associated with certain types of investments. For example, brokers may sell you an annuity without telling you that it has a surrender charge.
  • Financial advisers and brokers may provide misleading information in order to get you to buy products from them. For example, they may claim that a particular product is suitable for your needs, but then fail to mention that it comes with a high fee.

How do I avoid being mis-sold?

There are many ways to protect yourself against being missold:

  1. Ask questions before making any decisions. Before signing up for anything, ask what the costs and benefits are. Ask if there are any hidden fees. If you don’t like what you hear, walk away.
  2. Read all documents carefully. Read everything you sign. Don’t just skim through it. Make sure you understand
  3. If you have a problem with your product or service, contact customer support immediately. Tell them exactly how you feel about your experience.
  4. Don’t be afraid to say no. You can always decline an offer that is too good to refuse.
  5. Be wary of salespeople who try to pressure you into buying something. They may not even realize they are doing this. Be careful when someone tries to sell you something by telling you how much money you could make from it. It is very common for people to exaggerate their earnings in order to get you to buy something.
  6. Do not give out personal information without knowing exactly why you are giving it out. Do not agree to share your credit card number unless you know what you will be getting in return.
  7. Never pay for anything until you receive the item. Never send payment online. Always use a secure website.
  8. Always read the fine print. There is usually a lot of small print that most people miss. Look at the terms and conditions. Find out what happens if you cancel your contract early.

What do I need to look for when trying to determine if I’ve been mis-sold a pension?

  • If you lose any investment, it doesn’t necessarily prove that you were sold a bad product.
  • If you feel that your funds have been invested in something that is too risky for you, or that there was insufficient information provided when you bought the product, then you could be a victim of mis-
  • Instead, the advisor may not have mentioned any advantages you gave up by moving your funds, or he may have exaggerated the potential for impressive gains if you followed the advice.
  • If you bought a product or service after receiving advice from someone who was supposed to be advising you, then you can only claim that the product or service was mis-sold if you followed their advice. You’re completely responsible if you decide to set it up for yourself.

If you’re claiming for a mis-selling pension scheme, here’s how to do:

  1. Get the details of your pension scheme If you don’t have access to these records, ask the company to provide you with copies from the company that runs it. This will usually be an insurance company or fund manager. You can get this information by contacting them directly or through their website.
  2. If you have any documents relating to your claim, make sure they are kept safe and secure. It is important to keep copies of everything.
  3. You may also want to keep a copy of any letters you receive from the company. These could include letters confirming payments made on your behalf, letters informing you about changes to your
  4. Get the details of your claim from your pension provider. If they won’t give them to you, then get in touch with a credible investment fraud company and ask them for help. They will be able to tell you what information is needed to make a valid claim.
  5. Alternatively, you may also file it yourself, a DIY route for misselling pension claims. Make sure you are prepared. Collect all the necessary documents and evidence to back up your claim. Make sure you’re clear and concise when making your point.

Misselling is one of the most common complaints against financial advisers and brokers. It happens when someone takes advantage of your trust and confidence by selling you something that isn’t what you want or need. If you’re considering hiring a financial adviser or broker, make sure you understand exactly what they’ll provide and whether those services are right for you.



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