Top Warning Signs That You Were Mis-sold a Pension

Are you entitled to compensation for mis-sold pensions?

SIPPs, or Self Invested Personal Pensions, provide investors with the flexibility to choose their pension fund investments, allowing them to place their money in higher-risk products which can generate higher returns. However, this freedom may expose individuals to a level of risk beyond their comfort or financial capacity.

Negligent financial advisors can fixate on people’s desires for investments like this and misuse their funds, either for their own gain, or just through a lack of duty of care.

If you have a feeling that you have received negligent advice from your financial advisor, then read our warning signs below:

🔴 Your financial advisor lacks regulation from the Financial Conduct Authority (FCA)

A rising concern involves unregulated advisers branding themselves as ‘introducers,’ earning commissions by steering individuals toward inappropriate pension investments. If they are unregulated then they lack permission. Verify their regulatory status and that of their firm on the FCA Register.

🔴 Your advisor did not appropriately assess your capacity for risk

A financial advisor should not recommend SIPPs to people who have a low risk tolerance with investments. Moreover, SIPPs are designed for long-term retirement planning and individuals with less time until retirement may not benefit as much from the flexibility of a SIPP.

If you believe your financial advisor didn’t adequately address your risk tolerance, discuss potential consequences, assess your financial resources, and consider your proximity to retirement, contact us via phone or email.

🔴 You were encouraged to opt-out of your workplace pension scheme

A financial advisor can encourage clients to leave their workplace pension scheme with the promise of high returns, as well as tempting transfer offers.

The disadvantages of this are that workplace pension schemes often come with regulatory protections and governance and leaving the scheme may mean missing out on these safeguards. By leaving these schemes you are putting yourself at a higher risk in terms of losing your money.

If you’ve been removed from your scheme, face valuation issues, are dissatisfied with your pension’s performance, or encounter issues when trying to access your pension, contact us promptly.

What is the average compensation for a mis-sold pension?

The compensation amounts can vary widely based on the individual circumstances of each case.

Compensation for mis-sold pensions is determined based on factors such as the amount of financial loss suffered by the individual, the impact on their retirement income, and any associated distress or inconvenience.

Mis-sold Pension Solicitor

For the most accurate and current information on average compensation amounts and the process for making a claim, we recommend you get in touch with our Disputes department, who have specialist skills in pension mis-selling cases. They can provide guidance based on the latest regulations, policies and case precedents.

Investigation time frames can be surprisingly brief and by delaying the process it may affect your chances at remedying the situation. You can contact us on 01273 604 123, email us at or fill in our enquiry form.


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Speak to one of our solicitors today. We would love to hear from you and discuss any legal issues you may have and how we can assist you.

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