Examples of pension problems

Mis-sold pension

This is when a financial advisor gives you bad advice, and your pension is not suitable for your needs.

This could include being poorly advised to join an unsuitable pension scheme, transferring your existing pension to an unsuitable option, or purchasing a pension product - such as pension annuity - that doesn’t suit your circumstances.

Collapsed pension fund

This is when the pension provider has stopped trading for certain reasons.

Unfair changes to your pension

This is when the pension provider changes the terms of your pension without telling you or in a way that does not comply your terms.

Some acronyms explained

You may see a lot of acronyms for various schemes mentioned when talking about mis-sold pensions, such as SIPPs, SERPs, and DB pensions.

Just because your pension is one of these schemes does not mean it was necessarily mis-sold. But if you have concerns that you were mis-sold a pension product, find out more about your options below.

What are my next steps after complaining?

If your pension provider does not resolve the complaint to your satisfaction, there are things you can do. This is also true if your pension provider has ceased trading, and you can’t complain to them.

Independent complaints schemes

There are three official schemes you could access after complaining to your pension provider. These have been set up by the government. They don’t take sides, and they're free to use:

The Financial Ombudsman Service (FOS)

The Financial Ombudsman Service is a service that settles complaints between consumers and businesses that provide financial services. It is free and easy to use. The FOS resolves disputes fairly and has the power to put things right if it decides you’ve been treated unfairly. The FOS can help with complaints about most kinds of financial products and services provided in or from the UK, including some types of pension.

The Pensions Ombudsman (TPO)

The Pensions Ombudsman looks into complaints about certain pension schemes and decisions made by the Pension Protection Fund and the Financial Assistance Scheme. They can’t handle complaints about state pensions. They can help if you have been given wrong or misleading information, or if a promise has been broken and someone didn’t do something they should have. They deal with complaints impartially and the service is free.

The Financial Services Compensation Scheme (FSCS)

If a financial firm goes out of business and can’t pay someone’s claims, the FSCS can help to pay compensation instead.

Can I make a pension claim myself?

Yes. You have the right to do it free of charge. You should contact your pension provider first. If they can’t solve your problem through their complaints procedure, you can complain to an ombudsman or to a complaints scheme by yourself. An ombudsman will also look into your complaint if your pension provider takes too long to resolve it. This can take up to eight weeks, but you should check with the complaints scheme that you are using to confirm timeframes. If you use an ombudsman or scheme directly, you’ll be entitled to 100% of any redress and compensation awarded to you. Check Money Helper if you need support or guidance.

Can someone else help me?

Although you can make a claim yourself for free, some people prefer to get help and pay for a representative. You should know that this is ok, too, and you might decide it’s better for you.

Use a law firm regulated by the Solicitors Regulation Authority (SRA)

Law firms charge in a variety of ways. Many law firms may offer a 'no-win no-fee' agreement. This usually means that, if your pension claim is successful, the law firm takes a percentage of the redress or compensation that you receive from the ombudsman or scheme. 

Check if a law firm is regulated

Use a claims management company (CMC)

CMCs may also offer a ‘no win no fee’ agreement, with the CMC's fee taken as a percentage of the redress or compensation that you receive from the ombudsman or scheme.

Check if a CMC is regulated

If you decide to use an SRA-regulated law firm or CMC

  • The individual and/or firm that helps you must be regulated, which means there are protections in place for you as the consumer.
  • The law firm or CMC must follow their regulator’s rules.
  • You will have access to redress if things go wrong. You will have the right to make a complaint.

What should I expect if I choose a representative to help me?

If you decide to ask for help, you will need to provide the law firm or CMC with as much information as you can about the pension claim you want to make. This might include any or all paperwork to use as evidence.

From an SRA-regulated law firm

An SRA-regulated law firm should let you know about schemes or other official ways you can make your pension claim. They should advise you about the options you have and how they work and give advice as to what the best option for you is.

They should notify you about how to fund your case, the most common being a no-win no-fee agreement. You may have pre-existing insurance or be a member of a trade union that might be able to help with funding your pension claim. The law firm should give you a detailed breakdown of any costs you might have to pay.

The law firm must keep you updated about your pension claim and let you know how long it could take to get an outcome. They should be honest and open when talking about your case with you. If they don’t do this, you may be able to complain.

From a CMC

A CMC must let you know about schemes or other official ways you can make a claim. They must give you a summary of all the key information you have given. They must do this before you sign a contract with them to carry out the work for you. You have the right to cancel your contract if you decide to after a 14-day cooling-off period. They must also give you a detailed breakdown of the costs you will have to pay.

They must update you on key developments with your claim. They must explain clearly how to complain if you are not happy about the service they have provided.

Using claims management companies

CMCs are regulated by the Financial Conduct Authority. If you are unhappy with the service you get from a CMC, if the firm doesn’t resolve your complaint to your satisfaction, you can refer the complaint to the FOS. The FCA’s website and GOV.UK explains how you can complain about a claims company.