In the past, ordinary employees planning for their retirement followed a basic, simple and linear process: you devote yourself to full-time work, sign up for a company pension package and save a certain percentage of your earnings for your retirement savings. Once you render your retirement, you can then receive the lump sum, monthly pension and other benefits that the policy offers.
However, it soon became apparent that there will be a number of reasons that can turn your preparation for the golden years into terrible losses. Misleading statements of policymakers, inherently bad intentions of some scammers, lack of planning and insight in the part of the account holder, the limitations of government policies and regulations – these are just some of the factors that may potentially ruin not only your retirement plans, but your entire future.
A recent example is the collapse of Equitable Life which caused more than 200,000 people to lose their life savings. Some policyholders have received pay-outs equivalent to the retirement investments they have lost due to the mismanaged and misleading accounts, but it is now feared that a lot more – almost 400,000, according to the latest count of a leading newspaper – may miss out on the pension compensation due to them because of conflicts with the reimbursement scheme implemented by the government.
While the scandal rocked the country’s most solid financial institutions and retirement systems, some experts say that risks associated with retirement plans are nothing new. Some people still remember (or may even still be hurting from) the mis-sold pension cases that broke out during the 1980s when an estimated five million people were convinced by “commission-hungry salesmen” (as the Telegraph puts it) to exit their company scheme and switch to a personal plan. The plans turned out to be substandard and were further weakened due to the volatility of the stock market, causing policyholders lose thousands of pounds worth of retirement savings.
Just like in the case of the Equitable Life scandal, some of the victims of pension mis-selling have already received compensation, but a larger number is still waiting or working for justice. Reports say there may even be a larger number of undocumented cases of victims not getting the payout they deserve until now.
To address the issue, the government has implemented stricter, clearer rules on pension selling. They have also made it a priority to deliver accurate, urgent and relevant information to protect policyholders from incorrect or misleading advice. People with pension complaints are advised to seek out reliable, reputable and highly competent pension compensation specialists to provide them the knowledge and support they need while navigating the complex world of pension schemes, as they go about their task of saving (and not just saving for) their future.
About the author:
Sarah Miller is a business consultant by profession and a content creator, writer and blogger by passion. Having been exposed to the different aspects and faces of businesses, she frequently does research on useful information regarding the different methods and techniques to further improve business marketing, sales, and performance by visiting websites like http://www.pensioncompensation.net/faq/4574521183.