If someone sells you a pension deal without telling you the whole information then you have received a mis-sold pension. It is stressful to have a pension scheme that is not right for you. Mis-sold pensions can be difficult especially when you are fighting to get compensated.
Therefore the question that many people ask is could a mis-sold pension leave you out of pocket?
SIPP pension is used by many people because they get to control their own money more than the pension provider. Also, it gives people an opportunity to use different types of investments than any other standard pension. Thus, many people use it meaning the number of cases with regards to mis-sold SIPP is high. When your mis-sold pension is under the SIPP pension, then you need to present your claims. You will first present it to the provider which is going to cost you money.
Final Salary Pension
Final salary pension includes getting your final salary transferred to your pension. This is a good step that most people take but you should get claims advice to avoid misunderstanding. Thus, many people fail to understand their pension type, and when they are about to retire they discover new information which is not favoring them. The good thing is that you can also claim the final salary pension. This could leave you out of pocket because you are fighting to get money that you have been saving for many years.
If you work with a transparent provider that does not have mis-sold pensions, you will receive 100% compensation without spending extra money. However, if you have issues of mis-selling, you will spend certain amounts to get your claims heard. Also, it might take time before you get your full amount back. Fortunately, you are protected by the Pension Protection Fund, and thus you will not spend unreasonable amounts.
It is safe to take annuity on your pension whereby you receive a certain amount either annually or monthly. However, if you do not receive enough information in the beginning, you might end up with a mis-sold pension. Your pension provider can be paying for your monthly mortgage as part of the annuity, but you realize in the middle of the year that the provider does not pay the full amount. This is going to be stressing, and thus you will have to present annuity claims. You should get claims advice from a specialist to ensure you do not encounter other difficulties during your fight.
Filing annuity claims should not be so expensive. You will only need the money to pay your lawyer as most of the work will be handled by FOS. Everyone tries hard to avoid mis-sold pensions. However, you might still find yourself in such a problem. Thus, do not think that you have lost your money. It could leave you out of your pocket if you work with people who are not highly qualified. If you get claims advice from the right team. If this qualified team handles your fight, you will not spend huge amounts of money to get your compensation.