Tips to protect your pension money
Pension, a person’s assured gift after his lifelong commitment towards his work. But what if the retirement is mis sold pension to you? How it feels when you are not getting enough or the right amount of money after your departure. Here we present all the information you need to before you trust anybody handling your pension plans. It is essential to be vigilant on how the pension works and how money gets credited. Many pension frauds are happening these days that results in loss of hard-earned cash within seconds
What it is all about
By this term, we mean that you are not getting your due amount of money which you supposed to arrive at the end of your career, or you have invested it to Self-Invested Personal Pension(SIPP).
How to be sure that you got a faulty pension scheme;
If you have been in the following situation then you are the victim of mis-sold pension:
If primarily you were offered free pension plans now you are forced to invest that.
You may have been advised to transfer your pension, and now you know that you have suffered a loss.
So, the pension plan was unsuitable for you, and your pension expert failed to identify that or deliberately he didn’t inform you.
Some of the common faulty pensions:
SIPP is one of the commonly wrongly sold pensions these days. It is set up to hold underperforming, illiquid, high-risk investments with higher charging structure. With SIPP, you don’t need to involve your employer. Only your pension provider will be responsible.
Small Self-Administered Scheme-just like SIPP it is set up to hold underperforming, illiquid and high-risk investment.
Final Salary transfer- by this, the employer takes into account your last salary at the time of your retirement and based on that the number of your pension fixes. This is a widespread and popular measure to draw your pension plan. But due to its nature, it is not recommended to share the details with any pension provider. Sharing details with anyone can cause severe damage as the data theft is roaring high nowadays
Occupational pension scheme- in this, the employer set up one account to help you to save money for your future retirement. The employer contributes the same amount of money that has been deducted from your monthly income. But sometimes the employer fails to provide their share of the capital. In that case, you are mis-sold. Hence it is mandatory to know about the fraud and do what is required.
Qualifying Recognised Overseas Pension Scheme (QROP)- this plan is suitable for those who decide to settle down abroad after retirement. Many consumers have been mis-sold this, with a promise of cash advance pension transfer was made, but that ultimately results in high-income tax returns.
While taking a pension scheme from a pension service provider, you should check the following:
- Medical and health issues covered
- All the documents are clarified
- Make sure that there is no hidden clause
If you miss any of the points as mentioned earlier, you can claim for compensation.