Issues of mis sold pensions in the UK have been frequent since they have been experienced by millions of people, which has led to low retirements incomes by these people.
As a result, it has become increasingly common to file a formal complaint and claim compensation that is fairly compensable for loss of income during this time. One obviously has got a strong claim for compensation if he/she receives bad advice from his financial advisor or pension provider – but the question is how you can tell that?
Here are some key signs that you have not received good advice and you should stick to your current pension plan. Below are the examples of poor pension advice.
In cases where one needs to transfer pension, despite facts that the pension is not the best deal. And your pension advisor proposes transferring to a pension scheme which is private because the private one is paid less compared to your current company plan. This is an example of bad advice, even pension mis selling, which leads to compensation.
An advisor failing to explain operations of a new pension is an example of poor pension advice. It is the role of an advisor to ensure that the client has an understanding of the financial product before fully accepting the terms and conditions of the new pension.
Advisors should strictly explain to their clients about how various new pension schemes work. The advisors should explain to their clients about the potential impacts of leaving the current pension scheme and what are the benefits that the client may lose due to that.
After changing jobs most people are advised to go private. In most cases, if one shifts a company, he/she is advised to shift his current pension scheme to a personal plan. This clearly is an example of bad advice. Most of the times people are not informed about the opportunities from transferring your pension funds to new pension schemes especially if they bring about better financial options.
Confusion brought by the plans. It is worth to note that advisors deliberately mislead clients in order to get them to commit to a certain pension product. Most clients complain that they are confused by the information given by their advisors especially on questions regarding the pension’s products. They also feel that the questions they ask are not answered adequately by their advisors. This might be a perfect reason to ask for compensation.