The Truth About Mis-Sold Pensions: What You Need to Know to Protect Your Future

what you need to know to protect your pension

The Impact Of Mis-Sold Pension On Your Finances and Emotional Well-Being

You work hard your entire life to ensure you have a safe, secure, and comfortable retirement. However, this isn’t the reality for thousands per year who fall victim to ill-advised advice that leads to people losing hundreds, thousands or worse…Their entire life-savings. 

Mis-selling of pensions can occur in many forms, which can leave individuals not just having to pick up the pieces from their financial disaster, but also having to deal with the personal emotional stress and worry.

In this quick article, we will explore the impact of mis-sold pensions on your finances and emotional well-being, common indicators of mis-selling, types of mis-sold pensions, and what you can do to protect yourself from this risk.

We will also answer some frequently asked questions to help you better understand mis-selling and how to recover any losses you may have suffered.

Types Of Mis-Sold Pensions &
What You Need To Know

The pension sector is said to be worth trillions, which suggests there could be a lot of people out there whose pensions are at risk.

Mis-selling of pensions can come in many forms. Some may look like an opportunity of a lifetime that could yield incredible financial results. However, as the saying goes; “If it’s too good to be true, it often is… NOT

We’ve found that there are several non-standard pension investments that have been offered over recent years in the UK, which have ended up being mis-sold.

Below is a list of them along with the risks involved. 

what you need to know to protect your pension

Types Of Investments

There’s any number of investments you can make when it comes to transferring over your pension. But below are some of the most common ones: 

  • Storage Pods
  • Car Parks 
  • Overseas Property 
  • Forestry 
  • Clean Energy 
  • Un-regulated Bonds
  • And many more..

These are high-risk products that are unregulated, so we suggest you do your due diligence with these types of transfers.

housing matters

What Happens When You Invest In These Unregulated Products?

The investments listed such as storage pods and car parks are highly risky investments that will be held within a pension, but are not the pension itself. Those looking to transfer a pension, will typically transfer from their existing pension, to a new pension provider, that offers more flexible investment options (such as a SIPP or SSAS) The investments will be held within the SIPP/SSAS, but are not the pension itself, which means the funds have now been transferred into the high risk investment. 

What Type Of Pensions Are At Risk

risk and compliance

Pensions alone are not at risk. It’s only when you start to consider moving them, then the risk starts to go up. 

There are several pensions that are at risk when it comes to transferring them over. In this section, we’ll explore the risks of Self-Invested Personal Pensions (SIPPs), Final Salary Transfers, Small Self-Administered Schemes (SSAS), and Occupational Pension Schemes (OPS). SIPPS and SSAS’ are usually the new receiving scheme (where bad investments often take place), and final salary and OPS are usually the transferring scheme.

While SIPPS and SSAS’, are not prohibited schemes, they’re not suitable for anyone who lacks pension and investment experience. Before looking to make an investment, we advise that you take a greater degree of control over your policy to safeguard you from any mis-selling.

While SIPPs themselves are not a problem, subsequent purchase of high-risk and under-performing investments can be a major issue.

Final salary transfers are also rarely a good idea. While SSAS and OPS are generally well-regulated, there have been cases of mis-selling in these areas. Therefore, it’s essential to be mindful of what you invest in and consult with a financial advisor before making any decision.

How To Protect Yourself

The best advice we can offer is simple; Check that your advisor and pension provider are reputable and regulated. You can do this by searching the FCA register or looking up reviews on sites such as Trustpilot.

What to Do If You Were Mis-Sold a Pension & How To Recover Any Losses

If you suspect or believe you have been mis-sold a pension, we recommend taking action to recover your losses. In this section, we’ll explore the steps you can take and what to expect during the claims process. Consult with your pension provider first, then with a legal team who specialises in financial mis-selling.

man and a woman in a meeting

How Edward & Amaury Can Help You Recover Any Losses

Don’t let a mis-sold pension ruin your financial future. Fill out our quick online form, and we’ll connect you to our online claims system where we can determine whether you have a claim and what you can do to recover any losses. Our team of expert financial experts is here to help you every step of the way.

Find Out If You Have A Claim

Pension FAQ

Most frequent questions and answers

A mis-sold pension is a pension product that was sold to you under false pretences or in a way that was not suitable for your needs. This could include being pressured into investing in a high-risk scheme, being sold an unsuitable scheme, or being charged excessive fees.

Some indicators of mis-selling include being cold-called about your pension, being pressured into investing in something you didn’t want or need, or investing in a troubled investment. If you suspect that you have been mis-sold on your pension, then it’s important to seek legal advice.

SIPPs and SSAS’ are commonly mis-sold receiving schemes, while final salary and OPS pensions are two types of pension schemes that are often transferred. Personal pensions are most often transferred.

You can check if your advisor is in default by visiting the Financial Services Compensation Scheme (FSCS) website at

If your pension provider is in administration, you may still be able to make a claim for mis-sold pensions. Examples of pension providers that are now in administration include Berkeley Burke, Liberty Sipp, Lifetime Sipp, and Greyfriars.

Yes, you may still be able to recover your losses if you were introduced to the SIPP by a third-party introducer that was not authorised and regulated by the Financial Conduct Authority.

The first step in making a claim for mis-sold pensions is to seek legal advice from a reputable firm like Edward & Amaury Solicitors. They can help you determine if you have a claim and guide you through the claims process.