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Pension mis-selling is increasingly becoming a problem in the UK. As more cases come to light more and more people are beginning to realise that they may have been affected by this scandal. Pensions are the resources that we rely on to support us in later life and they can be crucial to happy, secure living in retirement. For many people the mis-selling scandal has undermined this and left them with much less than they thought they would have. If you have a Lincoln Financial pension this may have been mis-sold to you – so, how can you find out?

Are all pensions affected?

If you were sold a Lincoln Financial pension then there is possibility that your pension may be affected. Certain types of pension are more likely to have been mis-sold than others. For example the Free Standing Additional Voluntary Contribution (FSAVC), which is a separate, extra pension that is distinct from your employer pension has been frequently mis-sold. This product was set up to offer an opportunity to make retirement more comfortable through putting aside extra cash. However, the way the FSAVC was sold has negatively affected its value for many people and this is one reason why there have been so many mis-selling claims.

How do you know if you were mis-sold a pension?

Every case will be different but there are some common signs to look out for.

• Options were not widely discussed. If the advisor you dealt with to set up your pension offered you only one type of pension, such as a FSAVC, and didn’t give you information about other options then this could have been mis-selling. When it comes to making additional contributions to your retirement there are lots of ways to do this and it’s the advisors job to show you what else is on offer. If you were only given a choice of one or two products and no information about others then this can be a clear sign that mis-selling took place.
• Risk was not assessed. We all have a different attitude to risk and bring different life experiences to the table. An advisor should have asked questions about your attitude to risk to ensure that you were comfortable with the riskiness of the product you were taking on. This is especially important with a product like a FSAVC, which is a high reward option but also significantly higher risk than many others.
• The cons were not discussed. When you put your money into a pension product you should be clear about both the positives and the negatives of doing that. Mis-selling can occur where the cons have not been discussed. For example, an FSAVC can generate excessive transfer penalties meaning it’s impossible to transfer – this should always be discussed before the policy is taken.
• There was no need for the policy. An unnecessary investment will usually be mis-selling. This could happen with an FSAVC where someone was planning to stay with the same employer until they retired and so there was really no need for a portable pension product.

If you were sold a pension by Lincoln Financial Group this could have been mis-sold. Where that’s happened you could be due significant compensation as a result.