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Mis-sold pension?

gecko_101
Posts: 9 Forumite


I suspect I may have been mis-solved a pension, from what I have read online. Does anyone have any expertise in this area?
This goes back to the 1900s when I became eligible to join my companies final-salary pension scheme. I went to see a pension advisor. I had explained that I didn't see myself working for the company for the next 40 years and wanted to make sure I had flexibility.
I cannot remember how strongly a personal pension was sold to me, but all I know is that I chose a personal pension and invested on the pension for the next 10-ish years. Knowing what I do now I realise that not joined a defined benefit scheme would be crazy. For one thing I didn't know that when I left the company the pension would be frozen waiting for me. I know for one thing is that I was talked into contracting out of SERPS.
So, was I mis-sold and could I/should I claim? I'm almost certain this company does not exist anymore and I'm going to struggle producing any documentation.
I guess this leads to another question - If I did try to claim is it worth avoiding a lot of hassle by using a company.. and are there any that charge reasonable fees.
Thanks for any advice!
This goes back to the 1900s when I became eligible to join my companies final-salary pension scheme. I went to see a pension advisor. I had explained that I didn't see myself working for the company for the next 40 years and wanted to make sure I had flexibility.
I cannot remember how strongly a personal pension was sold to me, but all I know is that I chose a personal pension and invested on the pension for the next 10-ish years. Knowing what I do now I realise that not joined a defined benefit scheme would be crazy. For one thing I didn't know that when I left the company the pension would be frozen waiting for me. I know for one thing is that I was talked into contracting out of SERPS.
So, was I mis-sold and could I/should I claim? I'm almost certain this company does not exist anymore and I'm going to struggle producing any documentation.
I guess this leads to another question - If I did try to claim is it worth avoiding a lot of hassle by using a company.. and are there any that charge reasonable fees.
Thanks for any advice!
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Comments
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I had explained that I didn't see myself working for the company for the next 40 years and wanted to make sure I had flexibility.So it could be argued you got what you asked for?2
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gecko_101 said:So, was I mis-sold and could I/should I claim? I'm almost certain this company does not exist anymore and I'm going to struggle producing any documentation.gecko_101 said:I guess this leads to another question - If I did try to claim is it worth avoiding a lot of hassle by using a company.. and are there any that charge reasonable fees.0
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For one thing I didn't know that when I left the company the pension would be frozen waiting for me.It wouldn't be frozen. It would be deferred.I know for one thing is that I was talked into contracting out of SERPS.Nothing wrong with that. Most people who contracted out are better off by doing so. Plus, most DB schemes were contracted out as well.So, was I mis-sold and could I/should I claim?Yes you were if you sought regulated advice and bought the pension that way. No you were not if you bought it without advice and they just followed your instruction.
All advised pension sales between 1988 and 1994 were reviewed in the mid to late 90s to ensure suitability and people were sent a questionnaire asking them a range of questions about the sale and why they didn't join the occupational pension. You would have been chased on that questionnaire if you did not respond. The vast majority of people responded and if found to be missold, they would have been corrected at the time and then barred from any future complaint.
How did you answer the questionnaire at that time and what was the outcome? (i.e. did you say what you have here that you chose to opt out)I guess this leads to another question - If I did try to claim is it worth avoiding a lot of hassle by using a company.. and are there any that charge reasonable fees.If you are barred from complaining, then a CMC cannot help that. If you are not barred from complaining, then all a CMC will do is send your name, address and NI number to the firm and ask them to investigate the sale under the free-of-charge complaints process. The same process you would use if you complained directly. CMCs have a lower success rate than personalised complaints. There is actually more hassle using a CMC than making a direct complaint yourself.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Dazed_and_C0nfused said:I had explained that I didn't see myself working for the company for the next 40 years and wanted to make sure I had flexibility.So it could be argued you got what you asked for?
but, if I'd taken the company pension it would have been deferred. If I'd changed to another employer I would start another pension. I would have ended up with 2 pension pots rather than one except, one part of the pension would be paid for life.0 -
dunstonh said:For one thing I didn't know that when I left the company the pension would be frozen waiting for me.It wouldn't be frozen. It would be deferred.I know for one thing is that I was talked into contracting out of SERPS.Nothing wrong with that. Most people who contracted out are better off by doing so. Plus, most DB schemes were contracted out as well.So, was I mis-sold and could I/should I claim?Yes you were if you sought regulated advice and bought the pension that way. No you were not if you bought it without advice and they just followed your instruction.
All advised pension sales between 1988 and 1994 were reviewed in the mid to late 90s to ensure suitability and people were sent a questionnaire asking them a range of questions about the sale and why they didn't join the occupational pension. You would have been chased on that questionnaire if you did not respond. The vast majority of people responded and if found to be missold, they would have been corrected at the time and then barred from any future complaint.
How did you answer the questionnaire at that time and what was the outcome? (i.e. did you say what you have here that you chose to opt out)I guess this leads to another question - If I did try to claim is it worth avoiding a lot of hassle by using a company.. and are there any that charge reasonable fees.If you are barred from complaining, then a CMC cannot help that. If you are not barred from complaining, then all a CMC will do is send your name, address and NI number to the firm and ask them to investigate the sale under the free-of-charge complaints process. The same process you would use if you complained directly. CMCs have a lower success rate than personalised complaints. There is actually more hassle using a CMC than making a direct complaint yourself.
The only thing I do know is, if I could give myself in 1990-something not to turn down a pension that would pay me for life.
I guess that if my pension fund has grown exponentially I wouldn't be asking this question.0
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