You’ve probably heard about a number of companies being accused of misselling pensions in the past, you may even know someone that is currently claiming for a mis-sold pension, or is having their case investigated. Unfortunately, the misselling of pensions was very common in the 1990s and early 2000s, with many people investing in pensions that they had very little information about.
One particular type of pension that was a popular choice for many was a SIPP (Self Invested Personal Pension). You may not be able to remember whether or not you have paid into a SIPP in the past, so it’s always a good idea to check and see if you are entitled to any compensation for being mis-sold a SIPP, or any other type of pension. You could be owed compensation for misselling, and your funds may also have been used unlawfully by the pension provider. The FSCS is investigating a string of companies that have been responsible for incorrectly selling pensions and misinforming customers.
Why do people sign up to SIPPs?
A SIPP is a more flexible pension option, and it is likely that you signed up for one if you were looking for a pension option that gave you slightly more control over the investments that were made with your funds. Pension funds are invested in a number of different ways, and a SIPP allows customers to choose exactly where their money is going. Of course, investments do come with risks and the value of the investment can grow or decrease over time. Although a SIPP sounds like a great idea and gives you added flexibility that doesn’t come with a managed pension, some companies have taken advantage of this selling point and haven’t given customers the best or most accurate information regarding their investments.
How to determine whether you have a SIPP
You may find it difficult to determine whether or not you do have a SIPP, as most pensions do come with a level of customer control regarding investments. However, a standard pension will just give you the option to choose which pooled fund you want your money to be invested into. A SIPP gives customers more choice over investments, and also allows customers to choose an investment manager to manage their pension investments for them.
What should I do if I think my pension is a SIPP?
Not all SIPPs have been mis-sold to customers, so even if you do hold a SIPP it doesn’t mean you have been sold a fraudulent pension. However, if you want to find out more about whether or not you are entitled to compensation for a mis-sold pension, then contact us for more information.