Due to pension reform changes, advisers are spending more time and resources on retirement planning than ever before.
Pension freedoms and retirement planning
In 2015, people were given more power over their pension pot. Those aged 55 and over were offered greater flexibility on how to use their defined contribution pension funds.
Following the change, a third of independent financial advisers have seen a rise in people seeking advice on retirement planning.
The freedoms led to two-thirds of the workforce concerned that their pension pot would not last.
While pension freedoms gave people more options for investing their pension, the majority of people do not have the expertise in investments or retirement planning to make the decisions on their own. Many decided to seek advice from an expert.
Financial mis-selling
Unfortunately, with pension freedom reforms and a rise in people seeking advice on their pensions, came a rise in unscrupulous financial advisers looking to take advantage of inexperienced investors.
Trusting in an expert opinion can put novice investors at risk of financial mis-selling. Many self-invested personal pension (SIPP) schemes offer high returns which are very appealing to investors. However, if an investor is not fully aware of a scheme’s risks, they may have been mis-sold the investment and suffer losses as a consequence.
When investing in a SIPP, you should always:
- Be aware of the level of risk involved
- Know every detail of the scheme
- Discuss the size of your investment and the level of risk you are looking at with your adviser
An adviser’s job is to ensure you are offered investments tailored to your individual financial needs. If you are offered an investment before your adviser has discussed what is suitable for you, you may be at risk of financial mis-selling.
If your adviser didn’t give you easy to understand, straightforward advice about the risks you were taking with your pension, you may be owed compensation for financial mis-selling. Get in touch with our team of expert litigators today to discuss your mis-sold investment.