Car modifications can wreck your insurance
30 September 2024
From tinted windows to new alloy wheels, the pitfalls of vehicle alterations have been highlighted by us for the first time.
The common pension pitfalls are being highlighted today to mark pensions awareness week and help consumers understand the help that’s available.
In the last financial year (2023/24), we received 6,653 new complaints against pension and annuity providers in the UK.
Pension complaints can be some of the most complex cases we deal with, and complaints range from administration and customer service to mis-sale, suitability of advice and delays. Often, complaints relating to pensions involve a substantial amount of money and more vulnerable individuals.
Rachel Lam, Ombudsman Director said:
A person’s pension is the cumulation of a lifetime of hard work and sacrifice and it can be devastating for someone, and their loved ones, when something goes wrong.
Personal pension providers are regulated and are required to treat you fairly. If you have a pension and think something isn’t right, don’t put it off – ask your pension provider for help.
If you’re unhappy with the service being provided, or how your complaint is being handled, then you can come to our free, independent service and we can see how we can help.”
As Pensions Awareness Week gets underway across the UK, we published our top tips today for avoiding the common complaints brought to us:
1. If it sounds too good to be true, it probably is
Being the victim of a fraud or scam can be a life changing experience – both financially and emotionally – but there are steps you can take to avoid them and there is support available from our service should the worst happen. Be vigilant of fake websites, text messages that appear from a legitimate source and scammers who make claims that sound too good to be true.
2. Watch out for investments you don’t understand
Some of the complaints we see that have the biggest impact on individuals are about pension transfers to self-invested personal pensions (SIPPs) and small self-administered schemes (SSASs), which can allow for a wider range of investment choices. These can be the right choice for some people, but it’s a big decision to make and there are risks attached. Don’t rush into making decisions.
3. Understand what you’re paying
We see a lot of complaints about charges associated with pensions. Fees and charges aren’t always obvious, or easy to understand, and they can have a big impact on your savings over time. Pension providers have a duty to make charges clear and provide value for money. Make sure you understand what you’re paying for and ask your pension provider if you’re unsure.
4. Choose a regulated adviser for the best protection
We can only investigate complaints against Financial Conduct Authority regulated firms (FCA), so the Financial Ombudsman Service may not be able to assist you should something go wrong if your chosen pension provider or adviser is not FCA regulated.
5. Stay informed
Pension providers have an obligation to provide you with the relevant information about your personal pension. If you’re not getting the help you need, let your pension provider know. Staying in the know about your pensions terms and conditions can help you avoid falling foul of common mistakes or issues.
A consumer came to our service when she experienced unreasonable delays when claiming her husband’s pension following his death. The delays led to a reduction in the pension fund, causing a considerable amount of distress and inconvenience to the consumer, as well as impacting the funeral she was able to arrange for her husband
The pension provider admitted their wrongdoing and offered compensation, but our service also found over the course of the investigation that they should have switched the pension funds to cash on receipt of the death certificate. This would’ve prevented the fund’s value from falling by so much.
We instructed the company to backdate payments to the consumer and put her back in the position she would have been in had the correct amount been paid without delay. We also instructed the company to pay interest on that amount and pay a further £500 for the distress and inconvenience caused. The total award came to £5,000.
You can find more information about our approach to pension complaints.
The data referenced in this release covers the period 1 April 2023 to 31 March 2024.
30 September 2024
From tinted windows to new alloy wheels, the pitfalls of vehicle alterations have been highlighted by us for the first time.
19 September 2024
Businesses need to take a more compassionate approach to debt management, Abby Thomas, Chief Executive and Chief Ombudsman said today.
4 September 2024
Fraud and scam complaints are at their highest ever quarterly level, data released by us revealed today.