No pot of gold at the end of the rainbow
- AuthorDavid Rogerson
Most people who take out a pension feel they have acted sensibly and secured their future financial security. Working for many years to save sufficient for a happy retirement. Unfortunately some are in for a shock when they get closer to retirement and find out that their pensions are not what they had anticipated.
Sometimes, employers have pension schemes that have insufficient funds. The BHS pension fund is an example of how things can go horribly wrong.
Other times, as pensions are big business and pensions advisors often work on commission, some pension advisers may not be as dutiful in making sure a pension product suits a client as they should be.
Whilst it is always sensible to seek professional advice, a pension advisor who gave wrong advice can cause a client a real financial headache – and because negligent pension advice frequently is not uncovered until years after the pension fund was set up, suing a pensions advisor can be a complicated business.
Compensation claims against a pensions advisor can include claims relating to:
- Being advised to invest in a high-risk Self Invested Pension Plan (SIPP)
- Being advised to transfer a pension pot into a pension fund which is high risk
- Being sold a pension fund that was not suitable
- Being sold a poorly performing pension scheme when you were not aware the pensions advisor was selling a product from an affiliated company – or was receiving commission
- Not being advised of the risks of investing in a pension fund
- Receiving less money from a pension than payments into it
Clients who suffer financial loss or other loss as a result of negligent advice from a pensions advisor should first make a complaint through the firm’s own complaints handling procedure.
The Pensions Ombudsman investigates and adjudicates on complaints about pension schemes, but any compensation awarded may be limited.
Clients considering suing a pensions advisor for professional negligence have six years from the date of the event constituting negligence – or three years from the date they first realised negligence had occurred – in which to make a claim.
Because of the complexity of suing a pensions advisor– and proving that they failed in their duty of care towards a client or acted negligently in carrying out their duties –seeking professional advice is essential.
If your pensions advisor has given wrong pensions advice leading to financial loss or provided a negligent pensions advisory service – including mis-selling a pension – call David Rogerson for more information about making a compensation claim on 01636 675563.