Types of Mis-Sold Pensions Explained

Being a victim of a mis-sold pension is something no one deserves. As we progress through our lives, we work hard for a pension to allow us to enjoy our older years. Therefore, many people view pensions as the best way to make their transition to retirement simple and stress-free. 

Unfortunately, there are many horror stories of  people thinking they’ve found the perfect pension scheme to invest their money in only to discover that they have been scammed. This decision needs advice as it takes a large amount of risks, particularly if the scheme turns out to be a mis-sold pension. 

Let’s take a look at some of the most popular pension options below… 

What Is Pension Mis-Selling?

A mis-sold pension can include any pension scheme which you were advised to invest in without being provided all the legal required information or being told of the potential risks involved.

What Is a SIPP?

A SIPP is a self-invested personal pension. Put simply, it’s a pension that you manage yourself. With a SIPP you have more choice and control over what you choose to invest in and you can invest in unregulated products. SIPPs are designed for people who want to take control of how their pension savings are invested. They’re tax-efficient too. You can make contributions with your own money, through a regular savings plan or lump sums.

If you are considering investing in a SIPP, it is important to talk to a qualified financial adviser before making a decision

What Is a QROPS Pension?

A Qualifying Recognised Overseas Pension Scheme (QROPS) is a useful retirement option for those living, or planning to live, overseas. It’s essential to understand the processes involved in a QROPS transfer and to seek qualified financial advice before going ahead with a pension transfer.

It covers all the requirements needed for a recognised overseas scheme but if the scheme ceases to be  recognised overseas then HMRC need to be notified. 

However, transferring a pension overseas can have important tax implications, both in the UK and the country where your QROPS is located. Because of this, it’s usually worth getting qualified tax advice.

SERPs and Compensation Claims

SERPS is short for the State Earnings Related Pension Scheme, a scheme which provided a way for employees to top up their state pension entitlement. SERPS was a pension scheme operated by the Government, but it ceased running on 5th April 2002. It has since been replaced with the Second State Pension scheme.

Your pension provider should be able to advise you if your pension was contracted out of SERPS. Alternatively, you could check your payslip or just ask your employer. If you have lost the contact details of your pension you could try The Pension Tracing Service.

Annuity Claims

An annuity is an insurance contract that insures against you living too long. In return for a lump sum (the money you have saved in your pension pot), an annuity provider (insurance company) will give you an annual income for the rest of your life. If you have suffered from certain medical conditions prior to your retirement, you are likely to have been entitled to an enhanced annuity. This takes into account your medical conditions. Annuity mis-selling has occurred when a person is not properly advised about their entitlement to an enhanced annuity.

SSAS Pension Claim Advice

SSAS pension stands for ‘small self administered scheme’ and is a type of defined contribution pension that an employer can self-manage for less than 12 members.  Put simply, a SSAS is a pension vehicle for business owners wanting more control of their retirement savings.

A self-administered scheme gives you ultimate control of where your funds are invested, and with no SSAS pension providers, it’s entirely managed by you. You’ll also need to appoint ‘trustees’ of the scheme to operate the scheme on a day-to-day basis. This can be all of the members, or a select few.

When it comes to retirement, members can start withdrawing from age 55. The amount your members receive depends on how much has been paid into the pension pot, and for how long, as well as investment growth over time.

How to Find the Right Company to Help Me with My Mis-Sold Pension?

Get Claims Advice are Mis-Sold Pensions, Mis-Sold Investments And Final Salary Pension Transfer Claims Specialists based in Greater Manchester. They have a team with a variety of experience, qualified financial advisors, solicitors and industry experts with exceptional success with mis-sold investment and pension claims. Check out their services here at: https://getclaimsadvice.co.uk/


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