Retirement is a time when financial security is paramount, so it’s devastating to learn that you might have been misled about your pension investments. A mis-sold retirement investment claim occurs when financial advice provided about your pension is unsuitable for your needs, leading to unexpected financial losses or a compromised retirement plan.

Mis-selling can take many forms. Often, it involves being persuaded to transfer your pension to a different scheme with investments that carry significantly higher risks than you were led to believe. In other cases, you might lose out on valuable benefits from your original pension scheme because key details weren’t disclosed during the advice process.

Signs You Might Have Been Mis-Sold

If you’re unsure whether you’ve been a victim of mis-sold pension advice, here are some common indicators:

1. Commission-Driven Advice: Some advisers prioritise their own commission over your best interests, recommending products that don’t align with your needs or goals.
2. Transfers from Secure Pensions: If you were advised to leave a company or final salary pension scheme, this could signify poor advice. Such schemes typically offer significant long-term benefits that alternative plans cannot match.
3. Hidden Costs: Many individuals only discover the true extent of fees and charges associated with their pension after it’s too late, significantly impacting the growth of their investments.
4. Risky Investments: Were you encouraged to invest in high-risk or alternative schemes that promised “guaranteed” returns? If these investments led to financial losses, this could be a clear case of mis-selling.

Examples of Mis-Sold Pension Investments

Mis-sold pensions often include situations where:

• Risks weren’t clearly explained, such as being recommended a high-risk product when you requested low risk.
• Details about where and how your money would be invested weren’t disclosed.
• The product didn’t align with your financial goals or came with high fees that diminished returns.

What Can You Do If You Have Been Mis-Sold?

If you suspect you’ve been mis-sold a pension, it’s important to review the advice and details surrounding your pension transfer. Look for discrepancies in the advice provided, hidden fees, or unexpected risks. If you’ve noticed losses or inconsistencies, you may be entitled to compensation.

Compensation claims depend on the circumstances. If the advisory firm is still in operation, you can approach the Financial Ombudsman Service (FOS), which can award compensation of up to £430,000 depending on when your complaint was made. If the firm has ceased trading, the Financial Services Compensation Scheme (FSCS) may handle your claim, with a maximum payout of £85,000. For larger losses, you may also be able to pursue claims against other regulated entities involved.

If you believe you’ve been mis-sold a retirement investment, seeking professional advice is essential. Many firms like ours can help determine if you have a case, and understanding your options can help you recover what’s owed to you. With careful investigation and the right support, you can hold those responsible accountable and regain control of your financial future.