In layman’s terms, this means that the advice that you have been given was not the best advice for your situation. There are sadly many United Kingdom residents whose pensions have been put at risk through poor advice from their financial advisors, who convince them to transfer their money from safe investments to invest in riskier ones.
These risky investments, which are often unregulated, promise phenomenal returns and it is not easy for the average investor to know whether these investments carry an unsuitable amount of risk for them.
With increased life expectancy, pensioners can look forward to a longer retirement. It is, however, important to have a good pension plan to cover the costs of these years.
Many will not be in a financial position to enjoy their retirement as they have been convinced to put their money into investments that are worth little via self-invested personal pensions (SIPPs).
SIPPs were intended to give people more say in where they invest their money. The problem is that some of these investments carry a very high risk and it could result in the total loss of pension money.
Mis-selling often begins with an unexpected phone call where the caller will inform you of an investment opportunity too good to be true. You may be asked to attend a seminar in an attempt to convince you that the investment opportunity is above board.
More often than not, they will emphasise the lucrative investment returns and not inform you of the high risks involved.
If you feel that you have fallen victim to a mis-sold pension, your first step would be to consult with a specialist who will be able to determine whether you should consider submitting a claim against the financial advisor of the provider involved in the SIPP.