How To Determine If You Are Eligible For Pension Compensation

by Sarah Miller

People work hard not only to ensure that there is food on the table and that the kids can go to college; beyond that, people also want to enjoy their retirement years in comfort, with enough resources to meet their daily needs as well as for medical purposes.

However, countless people all around the world have been deprived of enjoying their sunset years. The culprit: a mis-sold pension.

During the late eighties and early nineties, a large number of people were advised to opt out of their pension and go for a personal pension. That has put them in a worse position as compared to remaining with their former pension plan. The large number of mis-sold pensions can be attributed, to a large degree, to independent financial advisers and agents of bank and life assurance companies who stood to gain much with the transfer.

But how do you know if you are eligible for pension compensation?

In order to answer this, you have to answer a series of questions. First, did the fund you were transferred to perform on target? Second, were the terms and risks of the new plan fully explained to you? In addition to this, did your financial adviser or agent identify and explain the benefits you were passing up on? And as such, did he or she make sure that the guarantees you lost were fully documented? Most important of all, would you have been in a better position if you were stuck to your old scheme?

The Financial Conduct Authority, through its Conduct of Business Source-book, has been clear on its rule that pension providers should make it clear to clients that exercising their open market option will yield a higher pension. The Financial Ombudsman Service has found that at least 40% of these providers have failed to sufficiently inform consumers about open market options, thereby increasing the chances of successfully making pension complaints.

Should you make a successful claim, the typical compensation will allow you to be in the same financial situation you would have been in if you had opted not to take the mis-sold pension.

Now, there are two routes to making a complaint: you can either do it by yourself or use the service of a professional claims management company. Using the service of a claims management company makes it easier for a lot of people to make a claim for compensation, considering the volume of paperwork they have to deal with along with the task of tracking down all the relevant people. In addition to this, a reliable claims management company will assign a claims manager who will update you throughout the whole process. Finally, a claims management company will work hard to ensure the best outcome for your own personal case.

About the author: Sarah Miller is a business consultant and a freelance writer. She likes to share what she learns from reading business books or from visiting informative sites like this United Kingdom website through writing significant and relevant content. She actually has a good grasp on various businesses like insurance, pension companies and the like.

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Retirement Planning Articles.