Red flag for Pension Misselling

Even if you don’t possess a pension yourself, informing your loved ones about these indicators might prevent them from falling victim to pension mis-selling or fraudulent schemes.

1. Pension Transfer Following an Unsolicited Call

This is a critical indicator. Our expertise in handling claims for mis-sold pensions reveals that a significant number of these cases involve individuals transferring their pensions following an unsolicited call. Marketing entities can earn substantial commissions for persuading someone to transfer their pension, sometimes up to 15% of the pension’s value. This has led to tens of thousands of such calls, primarily targeting individuals over 45, in the past decade.

2. Switching Pensions Post a ‘Free Pension Review’

While not every pension review is deceptive, some can lead to adverse outcomes. Marketing firms offering these reviews often lack the necessary financial advisory qualifications and are not regulated by financial authorities. Overzealous sales personnel might downplay the risks associated with pension transfers, potentially jeopardizing individuals’ retirement savings.

3. Investing Your Pension in Foreign Ventures

Despite the presence of numerous high-risk investment options within the UK, a considerable number of mis-sold pensions are linked to investments abroad. Examples include forestry operations, hospitality projects in regions like the Caribbean or Cape Verde, or agricultural and renewable energy ventures. These investments are typically high-risk and not regulated by the Financial Conduct Authority (FCA), posing a significant threat to your pension funds.

4. SIPPs, SSASs, and QROPS

While Self-Invested Personal Pensions (SIPPs), Small Self-Administered Schemes (SSASs), and Qualifying Recognised Overseas Pension Schemes (QROPS) are not inherently fraudulent, they are often exploited by scammers or unqualified marketers. These pension schemes offer more investment flexibility, including the high-risk options previously mentioned.

5. Transferring Out of a Final Salary Pension

Final salary pensions are increasingly rare and offer benefits that are difficult to replicate in personal pension schemes. Despite their rarity, the allure of high transfer values can tempt individuals to switch, often overlooking the long-term security these pensions provide. If someone is downplaying the advantages of your final salary pension during a transfer discussion, it should raise concern.

Should you recognize any of these signs and suspect that you’ve been a victim of pension mis-selling, you might be eligible to file a claim on a No Win – No Fee* basis. Consulting with a specialist, like one from Spencer Churchill Claims Advice, could provide further insights.