For most of us we get a tax free lump sum of 25% from our pension when we retire but is it wise to invests this or not and if I have invested it in the past does this mean I have a mis sold investment?.
This is a common question we get asked over and over again and the only answer we can give without looking at things in more detail is we are unsure.
So if this has applied to you in the past then check and see if any of the circumstances below apply to you and if so then there is a possibility you have been misold.
Many people were told to invest the full amount into an investment bond or a large proportion of the tax free amount which for many can be bad advice if the following applies to you.
Did you get an income from the investment bond straight away or before the end of the first year?
Were you advised that any income was tax deferred and not tax free?
Were you advised the value of the investment bond could rise as well as fall and were you left with enough cash on deposit if the investment dropped in value?
Were the charges fully explained to you and would be taken from the capital you invested?
If any of the above apply to you then you may have been missold and you should either make a complaint setting out why you feel it was mis sold or use the services of a company to do this on your behalf.
So what can you expect if you have been mis sold?
You will get any loss back if the investment has made a loss from your initial investment plus 8% interest from day one which is compounded every year you had the investment. This will generally be paid within the month of your complaint being upheld.
For people who have no longer got the investment because it ran the term set out or because they surrendered it because they either needed the capital or were worried about it losing money then your still have the same right to complain about the initial sale and the advice you received.
Time limits do apply to investment complaints the same as any other financial product and this is six years from the date of the sale or 3 years from when you first became aware that you had the right to complain about the advice you received.
This type of investment is not un-common in the UK as many people were advised to invest their tax free lump sum and for many it was not appropriate advice.
The pension was there to increase the retirement money you would get from the state and for most they would not risk this so it would affect the money they had when they retire.
If you have been advised to do this in the past then why not get the sale audited as you have nothing to lose other than possibly £10 to retrieve your file and it could make a difference to your income in retirement. To find out more visit http://www.missoldinvestmentsuk.co.uk today