Today we are going to take a look at what to do if you had bad pension advice.
Pension freedoms mean that you really do have more control and freedom over your pension.
But what does this means for you in a practical sense?
It can be so easy to get confused by pensions so I thought it might help if I rendered a clear explanation.
How did pension legislation change?
Pension laws had been the same for a really long time but they changed in 2015 with the aim of bringing more freedom and control to people in regard to drawing money out their pension. Were you aware of this?
One huge change was that people over 55 no longer had to buy an annuity with it but they could take the whole sun and do with it as they pleased.
This is a HUGE change
People who had a Defined Benefit (DB) pension, also known as a Final Salary pension could now, following the legislative changes move this into a personal pension arrangement and if they chose to access it all from age 55.
Does this all sound fantastic? We all want to control our own money, don’t we? I think if this would me I would have sunk the lot into the property and lived off the rent.
But nothing is ever as simple as it seems, especially when it comes to money.
Bad advice and pension freedoms
Like any kind of financial scheme it was open to people being exploited due to vulnerabilities and lack of knowledge and some people got really bad advice in regard to their pension freedoms, not realising the huge amount of benefits and financial security they were giving up when transferring from their defined benefit schemes.
The FCA ( financial conduct authority) have since bought in some important changes but lots of bad choices have already been made.
Getting it wrong with your pension is a costly and HUGE mistake.
What to do if you had bad pension advice
I sincerely hope you did not get bad pension advice but if you did all is not lost …I recommend you do this:
Many people have already made claims and it is easy to check if you have bad pension advice regarding your pension freedoms by reading through this checklist
Money and Me are an established claims management expert for mis-sold pension products so if you feel you wear missold a pension do pop over to their website and start a claim. You never know unless you try and it could make a big difference to your finances.
Wishing you the best of luck and if this has impacted you and your life I would love to hear from you. Do drop me a comment below.
What to do if you had bad pension advice is a collaboratove post