It’s a common misconception that pensions only concern elderly people or those over a certain age. At first glance, it might appear that few young people are concerned with their pensions – after all, it’s years before they’ll even get to see it. However, more and more young Brits in their 20s, 30s and 40s are being mis-sold pension investments.
The government took action on mis-sold pensions in January 2019 by banning cold calls. However, many young people who fell victim to cold calls in years gone by are still unaware they were mis-sold their pension investments
According to the Financial Services Compensation Scheme (FSCS), mis-sold pensions led to compensation payouts in excess of £40m in 2018. With this in mind, we decided to take a deeper look at why and how exactly young people in the UK are being mis-sold their pension investments.
How are young people being mis-sold their pension investments?
There are four key reasons younger people in the UK have fallen victim to mis-sold pensions.
They aren’t getting enough advice – or are given poor advice
Many young Brits are being given the wrong advice when searching for pension investments, or they’re simply not getting enough advice. Young people are often left confused about their pension options and require the correct advice to make an informed decision on their investments – but the FSCS has estimated that less than 50% of the advice given has been suitable.
They are given the wrong option
As a consequence of poor advice, many young people are being given the wrong pension investment option. Often, these options do not fit their circumstances and are considered a poor investment. For example, you could be advised to take out a personal pension when a company pension scheme might have offered you a better deal.
They didn’t get the opportunity to shop around
The FSCS insists that young people should be allowed to shop around for the best pension deals, just as they might with their bank account or even internet provider. However, many young Brits are pressured into a pension investment scheme without being made aware of their options.
Health or medical issues weren’t assessed
Health is an important issue when it comes to pension investments. Believe it or not, some pension advisors aren’t taking into account the health issues of young people in the UK before offering out investment schemes. This has resulted in those suffering from long-term health conditions being sold unsuitable investments.
Do you have a claim?
If any of the above statements apply to you, or someone you know, you may have a claim for mis-sold pension investments. But what can you do about it?
It’s recommended that you seek the help of pension claims professionals like Expert Pension Claims. They can help you get to grips with your mis-sold product and they’ll even contact your pension provider directly, so you don’t have to. Hiring an expert is the best way to make sure your claim is handled professionally and has the best possible outcome.