03 Mis-sold pension claims

Mis-sold pension claims and pension transfers.

A pension is usually the largest sum of money a person will ever make a decision about, and the decision is usually made once, under pressure, with a form to sign. That is why pension transfer complaints are the largest single category of investment mis-selling in the UK, and why the files matter more than the memories.

Short answer

A pension mis-selling complaint usually argues that a transfer, a switch or an investment inside a pension was unsuitable: the risks were not explained, the charges were not clear, or the guarantees being given up were worth more than what was gained. Complain to the firm first; the Financial Ombudsman Service is free if that fails.

Indicators only. Not legal or financial advice. Not a prediction of outcome.

Check your claimCompare the three routes

TEMPUS FUGITtime flies — and limits run

01 Is this you?

Tick what fits.

A claim is worth pursuing when the facts line up. These are the facts that matter most for this product. If three or more describe your situation, the checker is worth five minutes.

  • You transferred out of a defined benefit or final salary scheme, or out of a scheme with a guaranteed annuity rate.
  • The transfer happened in the last fifteen years.
  • The money went from a well-protected workplace scheme into a SIPP or a personal pension.
  • The new pension then invested in things you would not have chosen: overseas property, storage, forestry, green energy, lending.
  • You were told the transfer would give you “more control” or “better returns” without a downside.
  • You cannot recall anyone telling you what you were giving up.
  • The transfer was arranged after an approach to you, rather than by you.
  • You have never seen an analysis of the transfer, or a written reason it was right for you.

02 How it works

How a claim works for this product.

  1. The two-part failure

    Pension transfer complaints almost always involve two separate questions. First: was the recommendation to transfer suitable at all? Second: was the investment the transferred money then went into suitable? A defined benefit transfer can fail on the first question alone. A transfer that was defensible can still fail on the second, if the money was placed in something the client would never have chosen.

  2. Work out what was given up

    Defined benefit schemes typically provide an income for life, often rising with inflation, sometimes with a spouse’s benefit and often with a guaranteed annuity rate. Any comparison has to value those features, not just the headline transfer value. If you do not have the scheme’s transfer statement, ask the scheme administrator for the documents it gave you at the time.

  3. Follow the money to the underlying investment

    Once the transfer completes, the money has to go somewhere. The second stage of the complaint is about that destination: whether it was regulated, whether it was FSCS protected, whether it was high risk, whether it was illiquid, and what was said about it. A large proportion of the most serious cases involve unregulated or non-standard investments wrapped inside a SIPP — the pattern described in the UCIS pillar.

  4. Decide who to complain to

    Usually the firm that advised on the transfer. Sometimes the SIPP operator as well, where the complaint is about what it accepted into its scheme. Occasionally the scheme administrator, where the complaint is about how the scheme was run — that is a different route, and The Pensions Ombudsman may be relevant. Where the advising firm has failed, FSCS may be the route.

  5. Protect the pension while the complaint runs

    A complaint does not freeze the investment. If the underlying asset is illiquid or failing, act on independent advice about the pension itself at the same time as the complaint — the two are separate questions, and delaying the first can make the second academic.

03 The clock

Time limits are the first thing to check.

  • Firm complaint: normally within 6 years of the transfer or the advice, or within 3 years of becoming aware of cause to complain.
  • Ombudsman: within 6 months of the firm’s final response, which is normally due within 8 weeks.
  • FSCS: where the advising firm has failed; for firms that failed after 1 April 2019, up to £85,000 per eligible person, per firm for investment claims. Where bad advice is the issue, the advice must have been given on or after 28 August 1988.
  • Court: 6 years from the cause of action or 3 years from the date of knowledge, whichever is later, with a 15-year longstop from the act or omission. On older transfers this can be the binding constraint.
  • Different routes, different clocks: the Ombudsman applies its own view of what is fair as well as its time rules, so a case that is outside the court limits is not automatically outside the Ombudsman’s.

04 The routes

Which route fits your facts.

Complain to the firm that advised

The standard route, and free. Ask for the advice file at the same time: the transfer analysis, the attitude to risk record, the charges disclosure and the recommendation.

Financial Ombudsman Service

Free to consumers. It can look at whether the advice was suitable and whether the transfer was explained fairly, and it is not bound to the strict legal position in the way a court is.

FSCS

Where the advising firm has failed. FSCS can consider claims about advice given on or after 28 August 1988, up to £85,000 per eligible person, per firm for firms that failed after 1 April 2019.

The Pensions Ombudsman

A separate body for complaints about the administration of a pension scheme rather than about advice. If your complaint is about how a scheme handled a transfer request, this may be the right route.

05 Evidence

Documents to gather.

You do not need everything before you start. But a complaint that names dates, amounts and documents is much harder to answer with a template letter.

  • The transfer value analysis or comparison you were given, if any
  • The scheme’s transfer statement and statement of entitlement
  • The advice file: fact find, attitude to risk record and recommendation
  • The SIPP or personal pension application and terms
  • Documents for the underlying investment, including its risk rating
  • Charges disclosure for both the advice and the product
  • Correspondence, call notes and anything you were sent afterwards
  • Current valuation of the pension, and statements showing the movement

06 Questions

Questions people ask about this product.

Can I claim if I transferred out of a final salary scheme?

You can complain, and the question is whether the recommendation to transfer was suitable for you at the time. The size of the transfer value, your age, your other income, your dependants and what you were giving up are all part of that. Nobody can tell you the answer without the transfer analysis and your circumstances.

What if the SIPP invested in something that failed?

That is a separate part of the complaint and often the strongest part. The question becomes whether the investment was suitable and whether it was recommended or simply permitted. Where the underlying investment was unregulated, the practical result is usually a complaint against the adviser rather than a claim against the failed scheme.

The firm has gone. Is there any point?

Yes, it may be worth checking with FSCS, which is free to use and exists precisely for this situation. Check the FCA Register and the FSCS list of failed firms. Where the firm was never authorised, FSCS is not available.

How much can the Ombudsman award?

For complaints referred on or after 1 April 2026 about acts or omissions that occurred on or after 1 April 2019, the award limit is £455,000. For acts or omissions before 1 April 2019, the limit is £205,000 for cases referred on or after 1 April 2026. The Ombudsman may recommend a firm pays more than the limit, but the firm does not have to accept that recommendation.

Do I need to move my pension back?

Not as part of the complaint, and you should not act on that question without independent advice. The complaint is about the advice and the loss; what to do with the pension now is a separate decision about your retirement.

Does the tax position matter?

It can. Compensation for investment or pension loss can carry tax consequences, and the Ombudsman notes that firms will not deduct capital gains tax for you on investment or pension compensation. Take tax advice on your own position rather than assuming an award is tax-free.

Can I complain about a transfer that has done well?

You can, though it is harder to show loss and the Ombudsman may decide the outcome for you was not unfair. The fact that an unsuitable sale happened to work out is not normally the end of the analysis, but it does change what can be recovered.

What about a guaranteed annuity rate?

Giving up a guaranteed annuity rate is one of the specific features that has to be valued in a transfer analysis. If the analysis you were given did not deal with it, ask the firm why — in writing.

Sources

Every rule, limit and deadline on this page comes from the official sources below. Each was read on the date shown. Where we could not verify a rule against the official text, we have left a visible instruction to confirm it rather than describing it from memory.

MIS-SOLD INVESTMENT / CLAIM CHECKER

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