Have you been mis-sold a pension?
Many thousands of people all across the UK were mis-sold pensions during the late 1980s and early '90s, and you may be one of them.
Firms advised thousands of employees to 'opt out' of the State Second Pension or S2P, with the belief that a personal pension would likely outperform any other State pension that retirees could live off in the future. Some people may even have been told to transfer a preserved pension with a scheme of a former employer to a personal pension scheme.
The FSA have since learnt that such people who did 'opt out' may be financially worse off than they would have been with a second State pension since they have not received employer contributions.
The personal pension also required set up costs and charges, meaning that anyone nearing retirement age may have suffered a financial loss by not staying within their existing scheme. With consumer groups estimating up to 4.5 million people may have been affected, if you think you may be one of these people, read on to find out if you can make a claim and how to go about it.
Can I make a claim?
Were you advised to take out a personal pension, rather than an S2P - or Serps (State Earnings Related Pension Scheme), as it used to be called - between the years of 1988 and 1994? If you were, it is likely you were caught in this 'opting out' or 'contracting out' scheme and your second personal pension may have been mis-sold.
Please note, however, that to apply in time, you must make a claim within 6 years of you noticing that you may have been mis-sold the pension.
How to claim compensation for your mis sold pension