KP Law Logo White horizontal

What do you need to know about making a mis-sold pension claim? 

Share This Post

Many people experience mis-selling after being talked into transferring their pensions into less suitable, unregulated, or failed investments. Pension mis-selling is a growing problem, but victims do have the right to claim compensation. KP Law is helping those affected by pension mis-selling claim back what they are due. But what do you need to know about making a claim?

What makes a pension mis-sold?

Common examples of pension-mis-selling include where someone has:

  • Been talked into transferring a safe and secure defined benefit pension into a less suitable Self-Invested Personal Pension (SIPP), Small Self-Administered Scheme (SSAS), Qualifying Recognised Overseas Pension Scheme (QROPS) or another personal pension.
  • Lost money from a pension, or the benefits they thought they had did not materialise.
  • Paid excessive fees and/or commissions on the transfer of their pension (potentially on an on-going basis)
  • Been talked into transferring their pension into unregulated and potentially fraudulent investments, leaving them open to the wrath of HMRC.
  • Been advised to transfer a perfectly good scheme into a more expensive, complicated, unsuitable, or non-mainstream product which they simply did not require.
  • Not been told about the risks, charges or fees, or the T&Cs of transferring a pension (or these were not fully explained).
  • Been advised to invest in a pension that was not suitable for them.

I transferred my pension after I was cold-called and given financial advice. Should I be worried?

Many victims of pension mis-selling are targeted by unregulated salespeople via cold calls using hard-sell, pushy techniques. Often victims of this mis-selling are passed to regulated financial advisers to facilitate the inappropriate transfer. The motivation behind this is usually the generation of fees or commissions for the advisers.

My pension has not performed as well as I hoped. Have I been mis-sold?

A pension is not necessarily mis-sold if it does not perform as well as you hoped it would. Likewise, some investments are unpredictable by nature, and if you have a high-risk pension, that doesn’t necessarily mean that you have been mis-sold. However, your financial advisor should have told you about the level of risk involved, and if you were given unsuitable or misleading advice about the potential returns, you could have a claim.

I transferred my occupational pension to a private scheme, and the provider or adviser has gone out of business. Can I make a claim?

Yes, if your financial advisor advised you to transfer from a workplace pension to an unsuitable scheme and you can no longer access your retirement funds because the provider or adviser has since gone out of business, you may have a claim. 

The Financial Services Compensation Scheme (FSCS) protects consumers when financial firms fail. If a UK-regulated adviser has given bad advice concerning a pension transfer, and the provider or advisor has since gone out of business, the FSCS may pay compensation up to £85,000. 

I think my financial advisor was negligent. Do I have a claim?

To make a professional negligence claim, you need to demonstrate that you were owed a duty of care, that the professional involved breached this duty, and that this breach caused you to suffer a loss. This can be hard to prove, as a professional is not expected to be right 100% of the time.

To win your case, you must show that another experienced professional in the same field would have given different advice, or that the professional failed to follow recognised good practice.

We have a history of effectively handling these types of cases and can help you make a successful claim.


What are the potential consequences of pension mis-selling?

The result of pension mis-selling can be devastating. Victims might have:

  • Lost thousands of pounds from their pensions.
  • Lost the guarantees that came with their pensions.
  • Made unregulated, unsuitable, and potentially fraudulent investments.
  • Discovered that they cannot access their pension.
  • Been hit with high fees and charges.

Where does the compensation come from?

There are two main funds available to help victims of pension mis-selling:

  • If a financial advisor advised you to transfer from a workplace pension to an unsuitable scheme and the provider or adviser has since gone out of business, you may have a claim with the Financial Services Compensation Scheme (FSCS).
  • If a financial advisor advised you to transfer from a workplace pension to an unsuitable scheme that has not gone out of business, you may be eligible for compensation via the Financial Ombudsman Service (FOS).


Do I need a lawyer to claim compensation for a mis-sold pension?

You can make a mis-sold pension claim without a lawyer. But while a DIY mis-selling claim could save you solicitor’s fees, in the end, even if you win, you might walk away with less compensation. This is often due to a lack of understanding over the law/procedures, which can put individuals at a disadvantage when up against savvy (and sometimes aggressive) defence lawyers. And, of course, if you lose your case, you will likely have to pay the other side’s costs. Because Keller Postman UK offers no-win, no-fee funding arrangements, you benefit from expert legal support without worrying about costs 

How do I make a pension mis-selling claim?

If you were persuaded to transfer your pension to an unsuitable scheme, you might have been mis-sold, and we can help you to claim. We help our clients claim back what they are due via both the FSCS and the FOS. Signing up is straightforward and costs you nothing as we act on a no win-no fee basis.

More To Explore