The matter of Mis sold pension has become a serious issue these days. Senior citizens are the most affected ones. This is a very important thing which needs to be addressed. If you are miss-led by your service provider by wrong information then you are at the risk of not getting enough money. Surveys reveal that people who receive financial advice they have a higher chance of getting in trouble.
Know more about it
Itis sometimes better to hire a professional to help you understand how Mis sold pension works and other related details. If you have hired an expert for your pension scheme, he must give you the right information, as well as to choose the most suitable plan for you. So, that it benefits you in future. If he fails to do so, then there is a chance that you will be in the trap of mis-sold pension.
How to be sure that you are not receiving a good pension
If you have been in the following situation then you are the victim of a faulty pension scheme:
If initially you were offered a free premium now you are forced to invest that.
You may have been advised to transfer your pension, and now you know that you have suffered a loss.
So, you were not fully informed by your pension service provider about the gains and risks. Therefore, now you are such a situation that you are not satisfied with the pension product.
Some of the common problem:
SIPP is one of the commonly faulty pensions these days. It is set up to hold under performing, liquid, high-risk investments with higher charging structure.
If you are pressured to take a pension scheme without having an opportunity to survey the other plans available in the market.
Final Salary transfer- by this, the employer takes into account your last salary at the time of your retirement and based on that the number of your pension fixes. This is a widespread and popular measure to draw your pension plan. But due to its nature, it is not recommended to share the details with any pension provider.
Occupational pension scheme- in this, the employer set up one account to help you to save money for your future retirement. The employer contributes the same amount of money that has been deducted from your monthly income. But sometimes the employer fails to provide their share of the capital. In that case, you are misguided.
Qualifying Recognized Overseas Pension Scheme-this plan is popular among those who want to settle aboard. But this information makes it more vulnerable. As once the project is sold the persons settles in abroad, may be the pension provider cannot reach further. And you have to pay the extra income tax charge.
While taking a pension scheme from a pension service provider, you should check the following:
Medical and health issues covered.
All the documents are clarified.
Enough information on each investment.
If you miss any of the points as mentioned above, you can claim for compensation.