Are you currently switching from one career path to another? Or perhaps, have you recently resigned from your job and switched to a different company. If so, then you should know that your savings pot from your company’s pension fund is no longer open to contributions from you. This is the part wherein most people stumble and become victims of a somewhat fraudulent form of Pension Fund Transfer known as pension misselling. But what exactly is pension misselling and how can you tell if you may have been a victim of a mis-sold pension via a Pension Fund Transfer? Well, the truth is that it can be a bit tricky to know exactly if you have been a victim of a fraudulent or at least a bad Pension Fund Transfer or not but there are definitely certain indicators that you can watch out for. First of all however…
How To Avoid A Bad Pension Fund Transfer?
The reality is that while it may be hard to find out whether you may have been a victim of a pension misselling or not, it is actually very easy to simply avoid being mis-sold a pension. First of all, what do you think you should do if you are switching careers or companies and you can no longer contribute to your original pension plan? Do you feel that you need to do a Pension Fund Transfer and transfer all of your savings into a new plan? This is the big mistake that many people make. The reality is that you would be better off just leaving your old savings plan in place because all the benefits that have already accrued to your savings pot are still in place there as long as you leave them untouched. You can always start a new personal pension plan, but this does not mean that your funds need to come from your old plan. Therefore, avoiding a pension misselling situation from happening is really as simple as leaving your old savings untouched.
How do I know if I have been mis-sold a pension?
Ask yourself this question, have you transferred any funds out of your original employer’s pension plan? Was your decision to transfer your funds to a personal pension plan influenced by promises of big benefits from a financial advisor? For example, increased pension and income benefits. Over 25% profit bonus for signing up for a new pension plan? Now these advertising gimmicks are not necessarily fraudulent by themselves, but what is important is that you are also fully-informed of the risks involved in making a fund transfer to the new personal savings plan. Remember that big benefits also come with big risks and there is a chance that you may even receive far less than what you were promised or even lose money.
What can I do if I feel I have been victimized?
Seek professional legal advice from a qualified solicitor who deals specifically with pensions misselling and similar cases. A lawyer who specializes in insurance would be quite knowledgeable in this subject. You need to file a written complaint addressed directly at the company that sold you the pension or at the advisor upon whose expertise you relied upon.