Mis-Sold Pension - ABBEY LIFE

twentyfour11

I started my pension circa 1986 and have paid in over £38,000 to Abbey Life over the years. The fund value is £47,500 and the transfer value is £43,500. I am 59.

I now understand that there were massive set up fees and commissions in the early days. I was never advised about these. I have a friend who has a pension with another provider and his payments are about 40% of mine and yet his pension has almost the same value.

I feel I have been mis sold the pension.

The person I spoke to at Abbey life was very helpful with figures and suggested that I complain. I have done that but Abbey Life will not rule against themsleves and so I will have to take my case to the Ombudsman.

Any thoughts if I have any case?

Thanks

Jack

McKneff

You will have been given the terms and conditions before you even started the pension. Did you read them thoroughly.

Cant think why you think you have been mis-sold.

twentyfour11

I read the terms and conditions. The amount of commission and start up costs were not stated. I cant believe how larges these costs were.

bendix

I don't see how you are going to prove - categorically - that you weren't told about fees and commission from a product you bought 26 years ago.

Next to impossible to prove.

twentyfour11

I dont have the terms and conditions but I guess that Abbey LIfe would have to provide me with a copy.

I am very unlikely to get anywhere with this but from the figures above you must understand how angry I am at the situation.

dunstonh

I cant see how you have any case.

The amount you pay in is not as relevant to the dates you pay it in. i.e. a 40% market drop in year one is not going to have any impact but a 40% market drop 2 years ago will have a massive impact.

As I have mentioned on your other thread, the funds you hold have beaten the sector average over the period in question. They are not bad funds and have a good average run rate that wipes the floor with cash.

I now understand that there were massive set up fees and commissions in the early days. I was never advised about these.

You took it out in 1986. You would have been given information in line with the rules back in 1986 (two years before regulation started). Commissions did not need to be disclosed as you didnt pay the commission.

I have a friend who has a pension with another provider and his payments are about 40% of mine and yet his pension has almost the same value.

Were the payments made over the same frequency and at the same time?

I feel I have been mis sold the pension.

Ok, what rules have been broken?

I read the terms and conditions. The amount of commission and start up costs were not stated. I cant believe how larges these costs were.

Of course they were massive. They were priced in a period that had high inflation and an economy that was prone to boom/bust. Pricing of products back then reflected the economic cycle.

When that cycle ended, the charges came down. Pension charges dropped significantly in 2001 but have still being dropped over the last few years. How many times have you reviewed or employed an adviser to review the pension?

Velcro_Hotdog

26 years is a long time, what if anything have you done about the performance in those years? Have you ever looked at the fund performance compared to the other funds they offered or have you sat back and done nothing?

If you sat back for 26 years and just hoped that it would provide a suitable income I would say you have no one to blame but your self.

I don't understand why people take out a pension then just hope for the best and then complain when they reach retirement age. You will have received annual statements each year, why now after 26 years would you assume you were mis sold?

bendix

Velcro_Hotdog wrote: »

26 years is a long time, what if anything have you done about the performance in those years? Have you ever looked at the fund performance compared to the other funds they offered or have you sat back and done nothing?

If you sat back for 26 years and just hoped that it would provide a suitable income I would say you have no one to blame but your self.

I don't understand why people take out a pension then just hope for the best and then complain when they reach retirement age. You will have received annual statements each year, why now after 26 years would you assume you were mis sold?

Spot on.

It's amazing that only now - when you are looking for it to generate an income - are you considering it was mis-sold, and yet you will have had 26 years of annual statements.

During that time you seemed to think it was perfectly ok.

What gives OP?

twentyfour11

I have checked the the value every few months plus have the annual statement.

I actually dont need this as an income. I am self employed and have a good business. I have no mortgage and no credit card debt.

Should I have a checked more over the years YES.....Am I relying on this as an income or ever felt that this would be my income...NO

I had the guy who "sold" the pension come around to my house every year for about 18 years trying to get me to increase my pension...I am so pleased I said NO...NO....NO

If anyone out there thinks that investing £38k into a pension since 1986 and it now is worth £43.5k as a transfer value is good then I am sorry they have no idea!!!

bendix

So you have checked it quarterly, and you had the salesman come round for 18 years to discuss increasing your contributions.

Again the question needs to be asked. Why are you only raising the issue of it being missold today?

Velcro_Hotdog

twentyfour11 wrote: »

I have checked the the value every few months plus have the annual statement.

I actually dont need this as an income. I am self employed and have a good business. I have no mortgage and no credit card debt.

Should I have a checked more over the years YES.....Am I relying on this as an income or ever felt that this would be my income...NO

I had the guy who "sold" the pension come around to my house every year for about 18 years trying to get me to increase my pension...I am so pleased I said NO...NO....NO

If anyone out there thinks that investing £38k into a pension since 1986 and it now is worth £43.5k as a transfer value is good then I am sorry they have no idea!!!

There we go then, you have had sound advice and you decided not to take it. Do your sums take into account any tax relif?