We are all concerned about how we will fund our retirement. Have you been contacted by a firm offering to value your pensions and then been told how little you will get when you retire.
Were you then offered the solution to the problem? Do any of the following apply to you?
- You will only get about £20 per month when you retire, rubbish isn’t it.
- You pension is found money you can get it to make a lot of money
- The investment is safe and it is guaranteed
- Your current pension is at risk of going bust you need to act quickly
- Your capital is safe and you will get about 8% every year
- The investment will mature in 3 or 5 years
- I’ve done it myself and I’m happy with it
This could be included with investment mis-selling but it is such a big area we wanted to detail it separately. Everything that applies to investments applies to pensions but the major difference is how the investment was bought.
Normally the following process is followed:
- The offer (possibly from a cold call) to value your pension
- A call to offer a review as you could probably do much better
- Advised to buy an investment that will do much better that your existing pension
- Returns are probably guaranteed and your pension may go from £30,000 to £200,000 in only a few years.
- What have you got to lose £20 per month?
- You were advised to buy a SIPP or transfer to another pension.
- An Independent Financial Adviser was happy to recommend the transfer and submit your application.
- Your application for a SIPP was submitted to a SIPP administrator who arranged for your pensions to be sent to them.
- The Administrator then took instruction from your adviser to move the money to your chosen investment.
Both the IFA and SIPP administrator are regulated by the Financial Conduct Authority and have a duty of care to make sure the purchase of a SIPP and the subsequent investment is within the guidelines published by the regulator. They must treat you fairly and ensure you do not do something that would not appear to be out of character.