4 Ways Your Pension May Have Been Mis-Sold To You

Most often than not, people tend to ask the question “how do I know if I was mis-sold a pension plan”. The answer is however not hard to tell, especially if your financial advisor did not do anything wrong.

In the case your private pension is not offering you as much income as you received at your old workplace pension, then you may need to lodged a complaint to the appropriate quarters.

One of the commonest problems affecting workers in the UK is the issue of mis-sold pension. This issue however can have serious effects on employees, especially the old ones. It is important to take claims for a mis-sold pension very serious, but before making such claims, there is a need to identify that you have truly been mis-sold a pension plan.

Still in doubt and have the question how do I know if I was mis sold a pension plan in mind, below are some of the examples which are aimed at helping you further clarify and answer the question.

Four Ways Your Pension May Have Been Mis-Sold to You

You were not offered a ‘personal recommendation’

All financial advisors according to the FCA were recently compelled to present a more detailed assessment of the needs of their clients in form of a ‘personal recommendation’. The personal recommendation however means that the advisor is expected to take into consideration the financial responsibilities and circumstances of the client into account when offering a professional recommendation based on the situation the client is in. This process is aimed at reducing the generalization of the one-size-fits-all approach which is most likely to present clients with pension plans which aren’t suitable for them.

You were not given the option to continue with a work pension plan

When many people review their pension options as part of a career change requirement, they mostly swap from their work pension scheme to a private plan. However, as acceptable as this switch is, your financial advisor should be able to recommend a transfer of the existing pension funds into the new work pension as against a total overhaul of the process to start again. If you have to begin from the scratch with your private or new pension scheme, then you may have been mis-sold a pension.

You were actively advised to transfer away even though you had no plans to change jobs

Should your adviser recommend that you transfer away from your current employer’s pension scheme despite the fact that you have interest in staying at your current job for the longest possible time, then your financial advisor could be in breach of financial regulations.

You had no idea there were so many options

Several pension plans come with their varying benefits and as such there is a need to carefully assess the plans and choose the right fitting plan. However, in choosing the best option, your financial advisor should be impartial with the information provided for the many options available. An impartial adviser is also expected to advise you to shop around, in search of the best plan.