It is possible that you may be able to claim compensation for a mis-sold annuity. The Financial Conduct Authority has found that 80% of pensioners who purchased an annuity could have received a better pension income if they had been advised properly by the company they got their annuity from.
When it comes to retirement, many people with private or company pensions will have cashed their pension pot in to buy an ‘annuity’. With annuities, in return for the money you had saved in the pension pot, the annuity provider will pay you an income for the rest of your life.
In recent years, the Financial Conduct Authority (FCA) has investigated serious failings in how annuities were sold across the UK.
In 2019, the FCA fined The Prudential Assurance Company Limited £23.9 million after finding that more than 17,000 customers were sold non-advised annuities without being told they could shop around for a better deal or qualify for enhanced rates based on their health or lifestyle.
Later that same year, the FCA imposed a £30.8 million fine on Standard Life Assurance Limited for similar failings, ordering redress payments totalling around £25 million to over 15,000 pensioners.
These cases underline the widespread nature of annuity mis-selling. If your provider failed to discuss your health, smoking history or right to shop around, you could be among those affected.
If you have suffered from certain medical conditions prior to your retirement, you are likely to have been entitled to an enhanced annuity. This takes into account your medical condition(s), and may have resulted in a 20% – 100% increase in your pension income. Annuity mis-selling has occurred when a person is not properly advised about their entitlement to an enhanced annuity.
Even those without medical conditions may be missing out. It is common to purchase an annuity from the company you have been saving with, not knowing that you could go to another provider. If your pension company did not make this clear to you, you may have a case for a mis-sold annuity.
It’s difficult to give a definitive list of medical conditions, but if you suffered from one of the following prior to your retirement you are likely to have been entitled to an enhanced annuity:
TLW’s expert financial mis-selling team can advise you free of charge as to whether you have a mis-sold annuity claim, are entitled to extra income and also compensation for previous losses.
It really is that simple, all on a no win no fee basis and it will cost you nothing to find out. We are a regulated law firm acting in the best interests of our clients.
For more information contact us via our online enquiry form, email or call our team on 0191 293 1500.
Meet Sarah, who heads up our experienced Pension Claims team.
Sarah and her colleagues are on hand to help with your claim.
