Every year, thousands of people face the problem of a poor pension scheme. 70% of the population invests the hard-earned money to spend the silver years in peace. 30% of investors meet the situation where their investment is already a missold pension. People find a lot of investment plans and believe and await a good amount in the future. But not all are lucky enough to reap the benefits when they actually need it. Unfair practices, mis-sold policies and other unfair practices come into picture. This takes a long time to resolve and hence their life becomes stressful.
Lets today discuss the types of pensions that are likely to get mis-sold.
SIPPS for self investment
Self-Invested Personal Pensions ranks the top in the list of mis sold pension plans. SIPPS is a traditional and unregulated plan. Clients get different options to invest. They can also earn many benefit rather than other normal plans. The design of every plan is to encourage the expert investor. People with great level of knowledge in investments prefer such plans. People with high income also choose this type of investment. Agents mis sell such policies to inexperienced investors causing difficulties.
SSAS for self administration
Small Self Administered Schemes is yet another mis-sold plan for pensions. investors who work in small companies choose SSAS investment plan. The design of this plan is suitable for small companies and businesses. Businesses capable of running personal schemes choose this plan. Directors of the company establish this investment plan. Company takes responsibility of the legal handing. The main aim of all these is to move the responsibility of the pension administration. This becomes one of the plans that are mis-sold.
QROPS for overseas pension
Qualifying Recognized Overseas Pension Scheme is an abroad based pension scheme. Such pension plans are generally not designed for the general public. UK citizens who wish to move to other countries during their retirement choose this plan. Clients who take this policy are not aware of the money they spend. The chance of mis selling is more. They do not get any information about the investment. Overseas movement of money is not conveyed to the clients. There are not strict regulations. clients do not get information about their investment. This leads to a lot of risk. They do not get more information about the policy schedule or maturity. the plans are mis sold without their knowledge. It gets difficult to gain back and apply for claims.
Whether you have applied or not, you need to pick the right scheme suitable for you. Have you invested in any of the above plans? Make a move to ensure it is not mis-sold.