Steps to follow
- What kind of pension do you have? Is it an occupational pension, a personal pension, a state pension or a stakeholder pension? The type of help you can receive depends on the type of pension.
- Your first port of call is to the firm who sold you your pension. If they cannot resolve matters to your satisfaction, go to a complaints handling scheme. Be clear about the nature of your complaint. Is it about the advice you have received or the way in which it was sold to you? Or is it about the management of the pension scheme itself?
- Sort out your paperwork in advance, as far as possible. This will make it easier for the complaints handler to help you.
- Be firm but polite. Have reference numbers to hand when making a call, or include these in any emails or letters. Try to state your complaint clearly, include dates. Send copies of documents, not the originals. Make a note of the person you speak to, the date and time of your call, and the main points you made. Keep copies of all letters sent. In short, create a paper trail as proof of the action you have taken.
- If you need help with understanding documents, Citizens Advice may advise for free.
- Some companies offer to help with your complaint for a fee. If you use one of these, check they are regulated by the Ministry of Justice or by some other professional body, such as the Law Society.
- For occupational pensions, speak to the Pensions Advisory Service on all matters. They will try to resolve your issue informally. If they can’t do this, they will refer your query to the Pensions Ombudsman, which has similar powers to a court of law.
- If you have a group personal pension, a personal pension or a stakeholder pension, and your complaint is about the way you were sold your pension, make your complaint to the Financial Ombudsman Service. If your complaint is about the way the scheme is run, complain to the Pensions Advisory Service.
- If your complaint is about your state pension, contact your local benefits agency or the Department of Work and Pensions.
- If your query is about the part of your pension fund which was contracted out of the additional state pension (SERPS), complain to the Financial Ombudsman Service about the way it was sold, and to the Pensions Advisory Service about the way it is run.
- The Pensions Regulator regulates work-based pension schemes. The Financial Services Authority regulates private pensions.
- The Financial Services Compensation Scheme may be able to help you if your pensions provider cannot pay all amounts due.
- Six months before you retire, your pensions provider should send you details of the choices you have. You do not have to accept the annuity your provider offers, and can shop around for the best deal.
- In the run-up to retirement, you may want to switch your pension fund to a more low risk investment to reduce uncertainty. If you want to switch, find out about ‘cooling-off’ periods, which allow you to change your mind within a certain amount of time.
- You are allowed to take out a quarter of your pension fund as a lump sum when you reach the age of 55.
- There are two types of annuity: single life, which pays an income to you for the rest of your life; and joint life, which pays an income to you for the rest of your life and then, when you die, pays a reduced income to your partner or other financial dependant.
- Just to recap, the Pensions Advisory Service offers free and independent advice on pensions. The Financial Services Authority offers several free guides on its ‘Moneymadeclear’ website. The Pension Tracing Service can help you track down pension schemes you have been a member of in the past, and is a free service.
What to watch out for
If you want to delay taking your pension, check for any charges or penalties which might apply. If you are consulting a solicitor, ask if they are a member of the Association of Pensions Lawyers. Mediation may be a lower cost option than going to court in the event of a dispute. Your solicitor should advise you on this.
Solicitor’s top tip
The Pensions Protection Fund pays compensation to members of eligible pension schemes, where the provider becomes insolvent or there are insufficient funds. The Fund protects members of certain workplace pension schemes, and pays compensation to people whose employer has gone bust. You may want to check if your pension scheme is eligible for this fund.
Useful links
Free advice
www.moneymadeclear.fsa.gov.uk
www.unbiased.co.uk
www.financialplanning.org.uk
www.thepensionsregulator.gov.uk
www.direct.gov.uk
www.apl.org.uk
www.pensionprotectionfund.org.uk
www.ppfonline.org.uk
Online services
www.fsa.gov.uk
www.dwp.gov.uk
www.napf.co.uk
www.pensionsservice.gov.uk
www.pensionsadvisoryservice.gov.uk
www.pensions-ombudsman.org.uk
