Mis-Sold Pensions Claims

Mis-Sold Pensions Claims

Mis-sold pensions in the UK refer to pension plans that were sold under misleading or unsuitable advice, leading to financial losses or unexpected costs for the investor. You can claim compensation if you were a victim of such mis-selling because financial advisors and firms have a duty to provide accurate, suitable advice, and failing to do so entitles you to redress for any financial harm suffered.

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A mis-sold pension claim is a complaint lodged when an advisor has given you misleading or inadequate information about a new pension plan. It’s like getting caught unawares in a new pension arrangement, without full awareness or comprehension of the details or associated risks involved. The key characteristic of mis-selling hinges on the deliberate distortion of information about the suitability of the pension scheme.

You may have been advised to transfer your funds from an existing, stable pension scheme to one that doesn’t align well with your personal circumstances and future plans. These kinds of misrepresentation often involve schemes with higher investment risks and hidden charges. By comprehending this definition, you can rectify any misinformation by filing a mis-sold pension claim, potentially attaining compensation for incurred losses.


There exist different types of mis-sold pensions within the financial arena, and understanding these can be very beneficial. For instance, an advisor may have encouraged you to transfer your pension funds into a Self-Invested Personal Pension (SIPP). While SIPPs offer the potential for elevated returns, they’re more suited to experienced investors willing to embrace greater risks for larger rewards. As such, moving all your pension savings into such an unpredictable scheme may not be the most prudent of decisions.

Other scenarios of mis-sold pensions can occur when financial advisors prioritize their commission earnings over your best interests. Essential details about the pension scheme or its potential risks may be omitted.

Awareness of the nature and types of mis-sold pensions equips you to protect your retirement financial security. Should you have fallen victim to such deceptive tactics, fear not, there are measures you can take to claim compensation and get your retirement plans back in line.

Being alert to the warning signs and frequent situations of pension mis-selling allows you to make informed decisions and maybe even recoup your losses. But what if your adviser has stopped trading? This article ventures into these areas, assisting you in identifying a mis-sold pension amid this often elaborate financial realm.

Detecting signs of a mis-sold pension is your initial step towards addressing this issue. The Pension Justice team has enumerated some telling signs to look out for:

  1. Receiving vague advice with little to no accompanying information.
  2. Given a contract low on details or which doesn’t cite supporting sources to the advisor’s recommendations.
  3. Not being adequately informed about any risks and costs involved in pension transfers.
  4. Not being given detailed explanations for ongoing adviser charges you’ve been bound to.

SIPP Pensons

SSAS Pensions

These are subtle hints to concentrate on as potential indicators of a mis-sell.


Numerous instances of pension mis-selling arise where your financial advisor:

  1. Recommends a switch to particular schemes without discussing every associated risk.
  2. Gives more importance to commission earnings over your financial welfare.
  3. Advises on a Self-Invested Personal Pension (SIPP) or other high-stakes scheme without appropriate risk disclosure.

These situations could lead you towards financial losses due to unsuitable advice, culminating in a mis-selling situation.


Even if your advisor has stopped trading, your right to compensation for a mis-sold pension isn’t forfeited. You maintain the right to lodge a complaint and possibly reclaim a sizeable sum of your money. Even if your pension product provider fails or your scheme becomes a scam, there is a way out. Obtain advice from a pension compensation expert who can guide you on making a successful claim promptly.

This article imparts multiple perspectives on the subject of mis-sold pensions, equipping you to determine if you’ve been ensnared in such a scheme. Armed with this knowledge, you’re prepared to take the necessary steps towards claiming compensation and getting your retirement plans back on course.


Unraveling the intricacies of mis-sold pensions can be tricky. However, it’s but vital to grasp the steps involved in making a mis-sold pension claim. Whether you’re worried about investments with St James’s Place or another arrangement, lodging a claim opens the door for possible financial redress.


The realization of being misled in your pension scheme can be shocking, but all hope’s not lost. You can initiate a mis-sold pension claim. By scrutinizing your pension advisor’s instructions for accuracy and honesty, you can spot potential misconduct. Recollect, it’s not only about pensions that underperform, but equally about neglectful advice.


A mis-sold pension claim can be directed at several responsible parties. This could be against the Independent Financial Advisor (IFA) who may have misled you. Alternatively, the claim could land on the Self-Invested Personal Pension (SIPP) provider, who may have caused the misunderstanding.


Solicitors and IFAs play a key role in your mis-sold pension claim. Solicitors navigate you through the legal complexities of making a claim. Their responsiveness and acumen offer the requisite legal support. Meanwhile, IFAs contribute their financial knowledge, helping to assess the validity of prior advice received.


The time factor is of essence when filing a claim. For example, mis-sold SERPS claims apply if the bad advice led you to opt-out between 1st July 1988 and 5th April 1997. On the other hand, claims for mis-sold annuities by Prudential relate to annuities sold between July 2008 and September 2017. Even if your pension commenced years ago, don’t let time discourage you from making enquiries.

Handling Claims against Defunct Companies

If your advisor is no longer trading, hope isn’t lost, as compensation claims remain feasible. Through the Financial Services Compensation Scheme (FSCS), it’s possible to recover losses from failed financial firms. Exploring this avenue signifies your resilience and determination to defend your retirement plans.

Getting rightful compensation for a mis-sold pension claim can be complex. Knowing the ins and outs of the process can make it less daunting, giving you the lead role in reclaiming your financial certainty. Navigate this path, empower yourself, and find your way back to financial freedom.

Interested in finding out if you can claim?

Use our claims calculator to get an idea what you’re potential owed

Financial Aspects of Mis-Sold Pension Claims

As you navigate the complexities of a mis-sold pension claim, understanding the financial aspects is crucial. This section is set to provide you with the necessary insights under the following subheadings: determining compensation, incurring costs, successful examples and claim limitations.

Determining the Compensation Amount for a Mis-Sold Pension

Compensation serves to alleviate some of the financial distress caused by mis-sold pensions. The amount you receive is calculated by comparing your financial situation with your potentially better position had the mis-selling not taken place. It factors in losses incurred due to wrong pension schemes and missed investment opportunities. While it can never fully make up for all the money lost, it’s certainly an aid in getting back on one’s feet.

Costs Involved in Claiming Mis-Sold Pensions

Procuring compensation from a mis-sold pension isn’t devoid of costs. These involve legal fees and potential costs for financial advice. Some law firms operate on a “No Win, No Fee” basis, saving you upfront costs. You might also be eligible for free claims advice depending on the circumstances and your location within the UK.

Examples of Successful Mis-Sold Pension Claims

In September 2017, the FCA fined Prudential almost £24 million for failing to inform clients about other annuity providers or potential eligibility for a higher annuity rate due to serious health issues. Prudential had to set aside around £250 million to compensate those affected. This incident illuminates the potential successful outcome of reporting a mis-sold pension.

Limitations and Maximum Awards in Mis-Sold Pension Claims

The Financial Ombudsman Service, to which most mis-sold pension claims are sent, has a limitation period after which you won’t be able to lodge a complaint. The maximum compensation you can claim depends on the decision made by the Financial Ombudsman Service and it varies from case to case. It’s always advisable to consult with a professional before proceeding with your claim.

Remember, recouping your losses through a mis-sold pension claim can be a challenging job, but with the right guidance and determination, it’s possible. Stay informed and be prepared for any financial impacts that may arise during your journey towards compensation.

What to Do If You are Victim of a Mis-Sold Pension

You’ve spent years dedicatedly building up your retirement fund, only to discover you’ve fallen prey to a mis-sold pension scam. Painful as it may be, don’t despair. There are definite measures you can take to seek redress and protect your interests.

Steps to Take If You’ve Received a Mis-Sold Pension

The immediate aftermath of discovering a pension mis-selling can indeed feel overwhelming. But remain composed, don’t lose hope. Begin making your mis-sold pension claim by comprehensively documenting the circumstances surrounding the case. Evidently, compile any paperwork and communications related to your investment, providing a chronological record of events to back your claim.

Next, reach out to the financial advisor or firm responsible for selling you the scheme. You’re within your rights to ask for a clear explanation, with evidence of how and why you’ve been mis-sold the investment. In cases where the advisor is no longer operating or unavailing, consider contacting the Financial Ombudsman Service or the Pension Ombudsman.

How to Choose a Trusted Claim Service

When faced with the challenging job of claiming compensation, it’s tempting to leap at the first claim service that promises resolution. Yet caution is paramount. Bear in mind, there’s a proliferation of unscrupulous advisors who may not have your best interests at heart. Do your thorough research, check the company’s reputation, track record and fee structure before engaging their service. A trusted claim service operates transparently, never overpromises outcomes and focuses on putting you back in the financial position you would have been in hadn’t you received the negligent advice.

Want to discuss a potential claim?

Book a call with one of the team for no-strings-attached chat.

Pension mis-selling scenarios often entail complex legal processes. Hence, opting for credible legal advice is not only sensible but often necessary. Choose a firm, like Gowing Law Solicitors, which operates on a Damages Ground Agreement, more commonly known as a ‘no-win, no-fee’ agreement. With such a setup, you’ll not be charged in case of an unsuccessful claim. In successful cases, their charges will amount to 30% plus VAT of any compensation payment, directly deducted at the end of the claim process.

Exploring a mis-sold pension scenario might be challenging. But armed with proper knowledge, and a trusted legal guide like Gowing Law Solicitors, restitution is not beyond reach.

Key Takeaways

  • A mis-sold pension occurs when an individual has been misguided or misinformed about a pension plan, its risks and associated fees.
  • Several types of mis-sold pensions exist, with the most frequent cases involving high-risk schemes like the Self-Invested Personal Pension (SIPP), which rarely suit novice investors.
  • Red flags of mis-selling include receiving vague advice, contracts lacking details, incomplete disclosure of risks and hidden costs, and undue emphasis on adviser fees.
  • Compensation claims for mis-sold pensions can be initiated even if the adviser is out of business, with law firms and independent financial advisers assisting in this process.
  • The compensation received from a mis-sold pension claim usually factors in the financial damage due to misplaced pension schemes and missed investment opportunities, aimed at partially recuperating lost money.
  • In case of being a victim of a mis-sold pension, proper documentation, contacting the concerned adviser, and seeking the help of a trusted claim service or legal representation are the next steps towards reclaiming one’s rights.
Mis-Sold Pension Claims Statistics
Statistic/Information Details Source
Pension Mis-Selling Compensation (2018) £40 million [1]
Pension Mis-Selling Compensation (2017) £37.5 million [1]
Pension Mis-Selling Compensation (2016) £20 million [1]
Average Compensation for Private Pension £29,000 [1]
Average Compensation for Final Salary Pension £50,000 [1]
FSCS Compensation Cap £85,000 [1]
Common Mis-Selling Issues Encouraged to transfer to SIPP, investing in non-standard assets, advised to move from company pension to personal pension, pressured into new pension [2]
Time Limits for Claims Six years from mis-selling or three years from awareness [2]
Who Can Be Claimed Against Individual financial advisor or financial firm [2]
FSCS Role Handles claims where the company is regulated by FCA and has gone into administration [1]
FOS Role Advises companies to resolve complaints and put customers back in the right position [1]

Frequently Asked Questions

What is a mis-sold pension?

A mis-sold pension refers to unsuitable advice, negligence, or fraudulent activities leading to individuals buying pension plans not fitting their needs or financial situation. It emphasises inadequate or deceitful information during the pension plan selling process.

How can I identify if my pension was mis-sold?

Several warning signs denote a potential mis-sold pension. These include not getting sufficient information about the plan, inability to trace the advisor, or experiencing reduced financial value due to unforeseen penalties and charges.

What should be my course of action if my pension was mis-sold?

If you suspect your pension was mis-sold and the advisor is untraceable, contact a trusted claim service. They provide guidance regarding documentation and legal advice. You could potentially reclaim your losses from the mis-sold pension.

What financial aspects should I consider during a mis-sold pension claim?

Determine your financial compensation, understand costs involved, and do some research on successful claim examples. Remember, there could be limitations on maximum awards.

What can I do if I am a victim of a mis-sold pension?

Start by documenting everything related to your claim. Reach out to the relevant authorities if necessary and look for reputable professionals in the claims process. You may need legal and financial advice in reclaiming losses from the mis-sold pension.

Why is seeking proper guidance crucial when dealing with mis-sold pensions?

Proper guidance can help navigate the complexities of the mis-sold pension process, understand your rights, outline the steps to take, and provide professional support to ensure you follow the correct procedure for reclaiming loss.

Statistic/Information Details
Number of Cases 1.6 million cases of personal pensions mis-sold between 1987 and 1994
Compensation Amounts Average compensation for mis-sold pensions is between £25,000 and £50,000
FSCS Average Claim Value £74,945
FOS Compensation Cap Up to £375,000
FSCS Compensation Cap Up to £85,000
Total Compensation Paid £13.5 billion for clearing up the scandal
Missed Compensation Savers missed out on a combined £104 million in compensation last year, averaging £108,000 per claimant
Gender Disparity Only 14.5% of mis-selling claims in 2019 were made by women
Time Limits for Claims Six years from the date of mis-selling or three years from when the issue was discovered
Common Mis-Selling Issues Advised to transfer from company pension schemes to personal pensions, investing in non-standard assets, pressured into new pensions without adequate information
Regulatory Actions Hundreds of court cases, establishment of the Pension Review in 1994, £13.5 billion in compensation by 2002
Impact on Specific Groups Teachers, nurses, miners, firefighters, police officers, and local authority employees were among the victims
Recent Trends Over twenty thousand complaints about mis-sold pensions and investments in 2020/21, doubling from the previous year
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