Were you affected by the 2014 and 2015 mis-sold pension scandal?
If you haven’t heard about this scandal yet, take notice. Toward the end of 2014 and the start of 2015, it came to light that around 600,000 people — more than half a million people — cashed in their pensions in order to receive an annuity. (An annuity grants you a fixed payment every month during your retirement.)
These 600,000 people, however, bought annuities that did not take their health and their lifestyle into account. Why does this matter? Because people who are in poor health are eligible for something that’s known as “enhanced annuities.” These are annuities which, on average, grant people one-third more income. People in poor health have a lower life expectancy, and as a result are eligible for higher monthly payments.
After the mis-sold pension scandal came to light, annuity providers and annuity advisors started reviewing their records to look for errors. However, don’t wait for them to contact you to let you know that you’re eligible for more money. If you think that you might have been affected, it’s up to you to take the proactive steps necessary to make sure that you receive the money you’re eligible to get. Call your pension company right away to see whether or not you are eligible to recoup your losses.
Here are some of the characteristics that are typically found in people who have been affected by the mis-sold pension scandal.
Please take note that any conditions that were developed after retirement do not count.
People who were affected typically purchased their annuity directly from the provider. People who are eligible for claims need to be able to prove that the provider never inquired about the state of their health or their lifestyle at the time that they sold the annuity.
If you were affected, you should receive a payment that compensates you for the previous loss in income and you should also receive a boost in your monthly payments going forward. If you have not yet received anything and you believe that you are entitled to compensation, reach out to your insurer.
Remember, you’re going to want to get the most out of your annuity as soon as possible. This will allow you to live the lifestyle that you had hoped for during your golden years.
Annuities are irreversible. Once they’re sold, you are locked in for life. If you have been mis-sold an annuity, make sure that you correct this mistake so that you can enjoy your senior years with the money that you are entitled to receive.