Financial Updates

If you are concerned with the future and your financial situation after you have left the world of work, this is a good thing. Too few people nowadays think about how they will fund their lifestyle when they reach retirement age and such people could find themselves without adequate income if they do not plan for the future with a pension. Some pension funds are better than others too, and subsequently for people who do have a pension, a pension transfer can be in their best interests.

The government and other official organisations are trying to impress on people the importance of pensions. This advice is aimed particularly at young people as there are many who do not have a pension plan at all. The sad truth is that if these people do not get themselves sorted with a pension, they will find themselves poor in old age – a time of life when people want to be comfortable and to feel secure.

It is therefore essential that people start to think about pensions as something that they do need, rather than imagine that something will come up by the time they are ready to retire. Usually this something doesn’t come up so it is wise to plan ahead.

If you already have a pension then that’s obviously good news; however, there may be a better pension out there for you. Pension products vary widely as they are intended to cater for people with differing circumstances and needs. This means that there may be a pension that is more suited to your situation. Don’t feel that you are trapped with your current pension provider as it is very possible and relatively easy to do a pension transfer, and there is a lot of pension transfer advice available.

Pension transfer advice can be found in all sorts of places, from websites such as this to with companies that specialise in pension transfers. It is wise to do your research and it pays to read-up on the different pension products currently on the market before making any decisions. Scouring the market can also help you transfer your pension without having to pay a fortune, as there are firms that will do it for a very fair price. Transferring your pension is also an investment so you should consider the potential benefits of moving providers in the future.

If you want to have a comfortable retirement then a good pension to suit your circumstances is an absolute must. This could involve getting a pension in the first place if you do not have one now – and that is something that you should start looking into today. If you do have a pension already then a pension transfer could be prudent, to maximise the amount you will accrue and have to enjoy when it is time to leave work for the last time. With adequate funds your retirement could hold adventure, travel and fun, so start planning now.

There have been a number of mis selling scandals hitting the financial services area lately, and it seems like every week there is new area affected. One area where the problem has been rumbling on for years now is pensions, and there are no signs that the scale of it is getting any better. The number of people claiming compensation for a mis sold pension increases all the time, so if you think you might be one of them read on.

Obviously, your first concern is to find out whether you have been mis sold a pension and whether you are entitled to any compensation. The section below gives some examples where it has occurred, though it is by no means exhaustive – if you have any reservations about any advice you have been given, then contact a pension’s expert who will be able to advise you.

These were very popular in the late 1980’s and early to mid 1990’s, when interest rates were high. People were advised that could take out an interest only mortgage and start a pension as a means of paying off the mortgage at the end of the term. In many cases, these failed to grow as predicted or promised, leaving homeowners with a shortfall that they had to find themselves.

In 2006, rules on switching pensions were relaxed and many advisors had their clients change providers, either on the promise of better returns or to make the administration easier. While this did benefit many people, a number lost out. They weren’t told of charges, or the risks associated with the new funds, or the fact that it wasn’t an equivalent scheme and all sorts of other things that led to the actual returns being lower than what was promised.

These pension schemes came with a number of guarantees, not least of which were minimum levels of growth and guaranteed levels of income once you retired. Many people were advised to transfer them into other schemes, such as personal pensions, which appeared to be able to give better returns. However, if the pension didn’t perform as planned or as you were advised then there is a chance that you may have lost out financially and therefore that it was mis sold.

People approaching retirement, i.e. those in their 50’s and 60’s, are often advised to move their pension ‘pot’ into other schemes and funds that would supposedly protect the funds already built up. As with the other examples, a number of people may have lost out because the advisor didn’t take into account their views regarding risk, or tell them about charges, or explain properly the options available.

If you think any of the examples above apply to you, then you need to get your claim checked out properly. Due to the complexity of the rules around how pension schemes work, most people should go to a specialist pension claims company who will investigate on their behalf and, if they have been mis-sold to, raise a claim for compensation.