If you fear that your pension has been mismanaged, it’s often too late. Yes, you can always apply for compensation but in that very instant, your hard-earned pensions savings will have been mishandled and put into who-knows-what. The key is preventative measures. You need to be able to spot the signs of pension fund mismanagement before it’s too late. 

With that in mind, here’s how you do just that. Pension mismanagement is more often part of a wider, unlawful scheme than it is mere incompetence. Rogue financial advisers know exactly what they’re doing, so you need to be just as informed.

The details of your new plan weren’t explained very well

Or, at all. Unfortunately, one of the biggest signs that you have been duped into a dangerous and risky pension scheme is that the scheme itself wasn’t made clear. That refers to the contents of the scheme itself, as well as its expectations and general guidelines. This is one of the biggest and most common signs of mismanagement on the part of financial advisers. 

You changed jobs, but were told to go for a private scheme

A less common sign, but just as important. If, at any point during your dealings with an adviser, you changed jobs and were not advised to pursue pension enrollment with your new place of employment, then your savings may have been mismanaged. Of course, it’s your choice to move your savings into a private scheme over an occupational scheme and this isn’t necessarily where the adviser is at fault. The adviser is at fault if they do not, at any point, mention the possibility of enrolling in the scheme of your new job. 

Has your adviser been completely impartial?

If you get the feeling that the information you’ve been given is in favour of one decision over another, then your adviser might not be being honest with you. If you have a mismanaged pension, this is one of the most noticeable signs. You’re being misled, and if your adviser shows even the slightest inclination towards one outcome over another, then they’re not impartial. 

Your financial situation is changing, but the advice you’re getting is not

Another sign of pension mismanagement is simply down to negligent adviser conduct and poor management skills. If your financial situation is changing (the amount you’re earning has significantly changed, for example) and the advice you’re receiving is the same as it has ever been, then your pension is definitely being mismanaged. You’re not getting the advice you need. One size does not fit all when it comes to finances!

Your pensions adviser simply doesn’t listen to you

This sign is really problematic because it’s a sign of both criminal pensions mismanagement as well as the incompetence we mentioned before. Being duped out of your savings is bad enough; dealing with incompetence at the hands of someone in charge of your life savings is in the same ballpark. If you feel that your adviser doesn’t listen to you concerning any of your requirements regarding money, then your fund is being mismanaged and you should look elsewhere before serious and potentially irreversible commitments are made. 

There are plenty more signs, so you need to be vigilant 

If you think that your pension is being mismanaged, you need to exercise serious caution going forward. Keep an eye out for the above red flags. We’ve written plenty more on the subject, so take a look at the following articles for more information:

In the meantime, do a little bit of homework on SIPP claims – you’ll find that it’s actually really easy to start your claim for compensation for a mismanaged pension. All you have to do is fill in the form found on our fill in the form found on our website. From there, our specialist claims management team will assess whether you could potentially have a claim and will get in touch with you as soon as possible.

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