The pension crisis is threatening the financial security of the working population. The deficit of the UK’s public pension system is estimated to be around £3trn. This is expected to reach £24trn by 2050.
The unsustainable system has led people to look at other options to secure their financial future. This could leave many vulnerable to financial mis-selling.
Pension crisis and freedoms
As the pension crisis leads many to worry about their financial future, panic decisions could be made. Pension freedoms allow over-55s to withdraw their entire pension pot. Many choose to invest this to increase their pension pot. However, this option isn’t suitable for everyone.
When unlocking your pension pot, you become entirely responsible for your own pension and many choose to invest it. However, many people don’t possess expert knowledge on making investments, leading them to make poor investment decisions or place their trust in an adviser.
While the majority of advisers will offer suitable advice tailored to your needs, some unscrupulous advisers will take advantage of an inexperienced client. They offer unsuitable advice in return for easy commission on self-invested personal pension (Sipp) schemes.
You may have been mis-sold a Sipp if:
- The level of risk was higher than you could afford
- Your adviser misled you on aspects of the scheme
- The amount you were willing to invest and the level of returns you expected were not discussed before advice was given
- Your adviser didn’t know every detail of an investment being offered to you
If you have released your pension pot and are looking to invest for the first time, click here to read our blog. We offer tips for beginners on how you can invest to ease worries on the pension crisis.
If you believe you may have been a victim of financial mis-selling, get in touch. Our expert team of litigators can handle your complaint and offer advice.