Pension mis-selling is a scandal that has seen many individuals who have earned their right to a peaceful retirement shattered by malicious scammers.
A victim of one of these scams, Jennifer Ringstead from the Vale of Glamorgan, spoke out about how she had been tricked, along with her husband, into parting with more than £50,000 worth of their pension money. According to Mrs Ringstead, the caller who sold them on the deal was very persuasive and had all the right answers to her questions. What made the deception even more damaging was that Mrs Ringstead and her husband already had overstretched finances and were now forced to start saving again.
To prevent scams from taking place, below we highlight potential methods of pension mis-selling and how you can possibly avoid falling into the same trap…
If you have been contacted out of the blue, immediately be on your guard. Some scammers are savvy enough to have your contact details, but not your financial ones. They hope to win those over later.
Holding back on information
The individual or company selling you the pension might neglect to outline specific terms and conditions. These plans involve a lot of grey areas that are open to interpretation. When picking up a plan, be specific and press the provider for details. If they are hesitant to provide said details, that’s an obvious red flag.
Asked to transfer from a current workplace scheme
You should not have to worry about transferring funds from your workplace SIPP into a different scheme. In the world of financial advice, this is considered poor advice and hinders your current investment.
If you think you’ve been sold a bad SIPP, these are the things you need to do.
It is a general rule of thumb that if you are going to act on getting your money back, you should do so within six years from the time the last salary pension occurred. The sooner you speak up on any SIPP claims or QROP transfers, the greater the chances of getting your money back.
Make a claim
There are several bodies you can contact with your claim, the ombudsman, the Pension Advisory Service, or even the Pension Protection Fund. But your biggest priority should be the scheme provider. Once you have located the scheme provider, you can make the necessary annuity claims on the wrong final salary pension transfer.
If you feel you have been mis sold SIPP or have any other questions about your pension, contact Pension Justice now.