According to Money Redress claims expert Rob Ridge, Britons are not aware of the “true cost” of the self-invested personal pension (SIPP) mis-selling. He estimates Financial Service Compensation Scheme, which takes care of preliminary amounts for victims of financial fraud, will have to pay out about £10 billion in redress to all pensioners mis-sold an investment plan.
As its name suggests, SIPP allows pensioners to invest and re-invest their money to help boost its profits upon the pensioner’s retirement. Most financial advisers target savers promising huge returns if they invest in financial schemes including airport parking, holiday properties, green energy projects, and so on.
The average pensioner in Britain could claim back £50,000 at maximum for their redress. The Financial Conduct Authority advises savers to look into their accounts and see if a financial adviser mis-sold them a “too-good-to-be-true” investment deal for pensions.
Meanwhile, payment protection insurance claims is set to end on 29 August 2019. With almost only a year left to claim back all their repayments for PPI, consumers will likely clog up the entire system. The Financial Ombudsman Service anticipates receiving 5,000 complaints per week and it has improved its workforce to accommodate the estimated work volume.