In the UK thousands of people have been missold their pension for a variety of reasons and many have been compensated for the bad advice they received from the Financial Advisors at the time especially people who were transferred from final salary pension schemes.
Some people have had life changing amounts paid to them as compensation including Doctors, Pilots, and many more with some of the compensation as much as £167,000, £112,000 and much more so it is worth getting your pension arrangements audited by a good claims management company.
People who transferred their final salary pension on the advice given to them from a financial advisor are more likely to receive higher amounts as compensation because of the guarantees they have lost when the pension was transferred and if it is found that this was the wrong advice then the compensation must put the person back into the position they would have been in had they not transferred the pension in the first place and this can be substantial amounts.
What you need to understand is this applies to people who are still working and for those already in retirement, just because you have retired and are getting an income from your pension does not mean you cannot be compensated and this could make a substantial difference to your standard of living in retirement.
The compensation is paid in three different ways which I will explain now so you understand what to expect if you make a claim for being missold your pension.
If you have already retired you are entitled to the compensation as a tax free cash sum to do with it as you please which can really be life changing for many people in retirement. Imagine getting a windfall of £167,000 in retirement and the difference this would make to you.
If you are still in employment and not reached retirement then it will be paid into your pension fund in normal circumstances and this can make a big difference to the amount of pension you will receive in retirement. It could increase the amount of pension you will receive by thousands of pounds each year and remember you will still get 25% of the pension fund tax free when you reach retirement.
If you are still in employment within a final salary pension scheme but were sold FSAVCs and your final salary pension will be fully funded then you will be entitled to compensation if the FSAVCs were sold to you while you were a member of the final salary scheme. This compensation can be paid into the FSAVC pension or you can get the compensation as a lump sum.
Any compensation paid as a lump sum will in most cases come to you tax free lump sum and if added to your existing pension arrangements will also be added as a tax free amount.
If you feel you have a missold pension case then please get it audited as it could be life changing.