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We answer the FAQs commonly asked about mis-sold pension claims…

How much pension compensation will I get?

The amount of pension compensation you receive depends on when your claim was made and also if your Financial Advice firm is still trading. Nearly all claims are settled by the Financial Ombudsman Service or The Financial Services Compensation Scheme, there are different compensation limits these two bodies can make.

The FOS processes claims when the firm is still trading whereas the FSCS make judgments on claims where the firm is no longer in business. 

The Financial Ombudsman Service (FOS) has different limits that apply depending on when the case was brought to it.

Maximum claim amounts made through the Financial Ombudsman Service: 

  • £415,000 for complaints referred on or after 1 April 2023 about acts or omissions by firms on or after 1 April 2019.
  • £ 375,000 for complaints referred between 1 April 2022 and 31 March 2023 about acts or omissions by firms on or after 1 April 2019.
  • £355,000 for complaints referred between 1 April 2020 and 31 March 2022 about acts or omissions by firms on or after 1 April 2019.
  • £350,000 for complaints referred between 1 April 2019 and 31 March 2020 about acts or omissions by firms on or after 1 April 2019.
  • £190,000 for complaints referred on or after 1 April 2023 about acts or omissions by firms before 1 April 2019.
  • £170,000 for complaints referred between 1 April 2022 and 31 March 2023 about acts or omissions by firms before 1 April 2019.
  • £160,000 for complaints referred between 1 April 2019 and 31 March 2022 about acts or omissions by firms before 1 April 2019.
  • £150,000 for any complaints referred to the FOS before 1 April 2019.


Maximum claim amounts made through the Financial Services Compensation Scheme: 

  • Up to £85,000 if the firm failed after 1 April 2019
  • Up to £50,000 if the firm failed before 1 April 2019


Can I claim Pension Compensation?

You can claim pension compensation if you were mis-sold to, but losing pension funds is not reason enough to expect a pay-out. When claiming pension compensation, you are able to use a claims management firm, law firm or make an application yourself. 

Being able to claim pension compensation depends on many factors, among the most common are:

1.    If charges and fees were unclear

2.    If you were not told about the likely risks or how your money would be invested

3.    You were not an experienced investor

4.    You were encouraged to transfer from a Final Salary Scheme


Unexpected fees

One of the most common grounds for making a claim is when the consumer was not aware of the charges and fees, they were expected to pay for administrating the pension fund.

Fees charged for pension investments need to be clear, obvious and understood by the consumer – rather than buried away in small print or applied after setting up the pension.

According to the Financial Ombudsman Service between 2 and 4 per cent of all claims include a complaint about charges and fees. Even though this is a relatively small proportion of complaints, it still shows that a significant number of people are unaware of payments they must make to run a private pension.


You were unaware of the risks 

Financial Advisers often promise high returns as a carrot to dangle in front of consumers. In reality, these high returns are weighted against high risk and unregulated investments such as Overseas Property Developments, Storage Pods and Green Energy Schemes.

If such investments pay off, great, but they rarely do. For thousands of people, they have failed spectacularly. In such cases, there is always one question that needs asking: ‘Was the consumer aware of the investment risks at the start?’ If the answer is ‘no’ there are strong grounds for a claim for compensation.


You were not an experienced investor

The Financial Conduct Authority considers sophisticated investors as those with ‘many years’ experience and exposure to a wide range of investments.

High risk and unregulated investments are usually unsuitable to consumers who have transferred out of a Final Salary Pension, straight into a SIPP.

In these instances, an argument can be made that the consumer was not an experienced investor and is due compensation for losses to their pension fund.


You were encouraged to transfer your money from a workplace pension into a different scheme

Did your Financial Adviser suggest transferring from your Final Salary Pension to an alternative such as a Self-Invested Personal Pension?

Successive governments as well as The Financial Conduct Authority have continuously stated the overwhelming majority of consumers are better off with a Final Salary Pension scheme rather than a Personal Pension such as a SIPP or cash in the bank. 

This is because a Final Salary scheme gives a fixed retirement income, without many risks.  If your Financial Adviser advised you transfer out of a Final Salary scheme, also known as a Defined Benefit scheme you may be entitled to compensation for losses to your pension fund.


How many people make claims for pension compensation? 

Last year, a total of 6,549* claims were made to both The Financial Ombudsman Service and The Financial Services Compensation Scheme.  

The most recent data shows 653 new complaints in the last three months to the Financial Ombudsman Service. In this three-month period a further 403 complaints were made for other personal pension products including Final Salary (Defined Benefit) Transfers.

More than three thousand complaints regarding SIPPs were made to the Financial Ombudsman Service in 2018, they are the most complained about pension product against Financial Advisers. Last year’s figures are due for release soon.

From April 2019 to March 2020, the FSCS processed approximately 2,500* claims for mis-sold pensions, paying out £282m. This was against 549 different firms. 

The FSCS Annual Report 2019/20 published in July, quotes CEO Caroline Rainbird as referring to “an ever-growing number of claims against Self-Invested Personal Pension (SIPP) operators, which continues the rising trend of pensions-related claims”.


What is the average pay out for pension compensation? 

Records are not kept by either The Financial Ombudsman Service or The Financial Services Compensation Scheme for average pay outs. To get a good idea how much compensation you would be awarded it is advisable to work out how much you have lost in your pension fund. If your claim is successful it is likely you will be awarded an amount close to this.


How many people receive bad pension advice? 

In a report published last summer the Financial Conduct Authority said an ‘unacceptably high’ proportion of consumers in Final Salary (Defined Benefit schemes) had been advised to transfer out of their pension scheme.

The FCA’s report of December 2018 stated that in less than 50 per cent of all Final Salary (Defined Benefit) pension transfers, advice given was not in the best interests of the consumer. 

Figures for bad advice for general Personal Pensions are not collected by The Financial Conduct Authority.

Finance experts believe only a small proportion of consumers who have been mis-sold to have made claims but it is likely the total number is in the hundreds of thousands. In many cases, mis-sold pensions have led to either a ‘significant’ or ‘complete loss’ of an individual’s pension funds say the Financial Conduct Authority. 


How long do I have to make a claim for pension compensation? 

You should first make an official complaint your adviser. They have eight weeks to respond. It is best to do this via email and/or recorded delivery letter. 

After this period, you have six months to take the complaint to the Financial Ombudsman Service. If the advice firm has gone out of business, you can submit a claim to the Financial Services Compensation Scheme. 


Rodders Hewitt
Pension Claim Consulting Ltd ...have for me done a great job ...within the expected time scale ...Couldn't have asked for more
Phil C
Thank you to all at PCC. My claim was managed brilliantly and was successful. I can highly recommended their services. Thank you once again
Christopher Fraser
After identifying a concern regarding my pension, I sought advice from Pension Claim Consulting. The response and customer service was swift and amazing. The courtesy and care taken throughout the whole process was phenomenal. The consultant’s communication from start to finish filled me with confidence that PCC do exactly what they state and were on hand whenever required. The level of understanding, empathy for the frustrations, and patience is by far the best I’ve witnessed. I cannot thank PCC enough for their outstanding work ethic and dedication to customers/clients. If you have any concerns at all regarding your pension, then I would highly recommend that you get in touch with them.
Andy Yates
Fantastic service, so impressed with Pension Claims Consulting. None stop updates throughout and everyone who works there was so helpful and supportive in every way. Thank you so much for getting my pension back.
Robert Manningham
Pension Claim Consulting Ltd successfully won a case on my behalf following misguided advice I received in relation to my pension. They were most proactive in the process and kept me fully informed every step of the way. I have no hesitation in recommending their services.
Deanamo 84
Very professional, very thorough and very good at what they do. Always at the end of the phone or email for any questions at anytime throughout the process. I can’t recommend them enough.
Roger King
Pension Claim Consulting managed to reclaim some of my pension by constantly chasing the company that fraudulently took my money. I though that I had lost everything. I cannot thank them enough on recovering some of my pension back.
Susan Stringer
Excellent standard of service. The claim was protracted substantially by virtue of opponents trying hard to not accept any responsibility for their actions and not return the pension fund. PCC kept me fully informed throughout the process, obtained an excellent result for me.They also kept chasing the opponent when little action was taking place from them. The staff were always pleasant and helpful to deal with and very encouraging when I felt my claim was doomed to failure. I can not praise highly enough
Paul Wilshaw
Very professional and informative from the beginning of our 5 year relationship. They talked me through every step of the process with what to expect. I would recommend Pension Claim Consulting to anyone who wants an honest and professional service.
Bill Cass
Great team and they will get the best outcome they can always kept informed the process took a longtime not because of anything pension claims consulting did purely the pension sip provider playing games i would 110% recommend this company to pursue your claim without doubt best thing i have done they didn't give up on my claim even though I had given up on any good outcome however finally resolved and paid thank you pension claim consulting
Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.