How do I claim for my FSAVC compensation from Lincoln Financial Group?22 Jan 2021, Posted by Latest News in
FSAVC compensation can be used to put you back in the position that you would have been in if you had never been sold the separate additional pension plan in the first place. If you have ever had a FSAVC with the Lincoln Financial Group then you could be eligible for this compensation.
What is FSAVC compensation?
An FSAVC – a Free Standing Additional Voluntary Contribution – is an additional pension plan that can be sold separately to an employer’s pension plan. This is a product that was created for those who are looking to have an extra pension that can be used to put additional money away for retirement years. In theory they are a great idea but unfortunately many have been mis-sold. This is often as a result of the high associated costs that have had a detrimental effect on the value of the investment value of an individual’s pension.
How do you know if your FSAVC was mis-sold?
- You have always planned to stay with your employer until retirement. FSAVC is a portable pension product that is only really suitable for employees who might be planning to leave their current workplace at some point. If you weren’t planning to leave then the FSAVC may simply not be the right product for you. In addition, employers with final salary pension schemes often offer in-house alternatives to an FSAVC that can be much more suitable.
- No other options were presented in terms of additional contributions to your retirement funds. FSAVC is not the only option available when it comes to making extra contributions in relation to your pension. However, if when you were sold the FSAVC you weren’t given information about what those other options were then this could also be mis-selling.
- You were not informed about the lack of flexibility. The FSAVC often has very high transfer penalties, which effectively means that this is not a transferable policy. If you were not told about these high costs then your FSAVC may have been mis-sold.
- The risks involved don’t align with your attitudes and experience. An FSAVC can generate higher returns but this may also come with an increased set of risks that may not be suitable to certain attitudes or experience. Advisors should always check whether you have the right attitude and experience for the level of risk involved in a FSAVC – if this did not happen then the policy may have been mis-sold.
If any of the above feels familiar then you may have been mis-sold your FSAVC and able to claim compensation. To find out more about financial misselling from Lincoln Financial Group refer to our website…