Your pension is a crucial investment, especially because you have worked for it for the better part of your life. As such, the money is supposed to make your retirement years comfortable. With this in mind, most people consult financial advisers to help them invest wisely, but this is not always the case. The wrong advice may result in a mis-sold SIPP, which ultimately reduces your pension.
There have been numerous complaints of mis-sold SIPPS over the years with a study indicating that in 2017, the complaints rose by 37% from the previous year. To avoid becoming a victim, it is wise to seek the help of a financial team that deals with mis selling.
What is a SIPP pension?
A SIPP (Self-Invested Personal Pension) occurs when you move your pension money into a high-risk investment. An investment is considered high risk if it might decrease or increase in value. However, such pensions are advantageous because they give you the flexibility to invest your pension monies however you please. If you are not an experienced investor, it is wise to rely on the guidelines of a professional financial advisor to ensure that you get the best out of your investment.
There are different types of SIPP investments. Some of them include:
• Investment trusts
• Government securities
• Insurance company funds
• Unlisted shares
• Commercial property
• Carbon credits, and
• Unit trusts, among others
There are different ways of knowing if you have been mis-sold your SIPP pension, but the most obvious one is that you will suffer a financial loss. Other ways to identify a mis selling on your SIPP pension is when you have unexplained risks, unexplained fees, an unsuitable scheme, pressure selling, and when your investment fails. With all these risks involved it is no wonder there is a declining faith in SIPP’s which you can read more about on our site.
What to do when this happens
When you have a mis-sold SIPP pension, you need to reach out to a financial advisor to start the process of making your claim. Every investment firm has a responsibility towards the clients it serves. As such, you can make a claim whenever you feel that your investment hasn’t been managed appropriately. The financial advisor can help you see how your SIPP pension has been managed (find out about how long you have to claim against a mis sold SIPP).
An expert will start by reviewing the paper trails to identify any negligent SIPP pension advice. If your pension transfer was done by a regulated party, then your advisor will help you to follow up with the right body. This will ensure that you recover your losses plus the accumulated benefits of your pension.…