Pension frauds and how to deal with it?


Currently, there are many cases of pension mis selling rising day by day.  People are investing in different pension plans without verifying. As a result, they are not receiving a decent amount to run their life after retirement.  The pension problem is going to aggravate as the number of pension holders are on the increase compare to the number of contributors. This is creating a gap between the promised amount and the real amount.

A critical issue that needs a quick fix

Not all people are aware of the financial tricks. So, they rely upon the experts to plan their future life after retirement.  They don’t realise the difference between an expert and a less known person. Therefore, they ended up getting fewer pensions at the end of the month.

You are at risk if your pension adviser is giving you unsuitable pension plan and is keeping you in the dark.

Some common problem of pension plan:

Self-Invested Personal Pension (SSIP)-Pension is based on self-investment. SSIP usually set to hold under-performing, liquid, high-risk investments with higher charging structure. In this, the employer has rolled in the pension plan of the employee.  You have to make payments for your pension. But, if you transfer your pension into an SSIP, then you are at risk.


Small Self-administered Scheme- this plan also works as SSIP. This was set up to avoid strict regulations by unregulated entities.

Occupational pension scheme: In this scheme, the employer plays an equal part in the employee’s pension journey. The employer pays a certain amount of money, whereas the employee pays the same amount from his monthly salary. But the problem is that if the pension provider fails to pay his part, then the pension holder suffers.

If you going settle overseas after your work life ends, it will be considered as the right decision if you choose Qualifying Recognized Overseas Pension Scheme. But often consumer complains about of paying an extra amount of high-income tax.

How to determine a less benefited pension

If your pension plan adviser is offering the only plan, then there are chances that you will be less benefit.

At your old age, you have to the right amount of money for health issues.  Your adviser should be aware of this. And he should encourage you to take a plan which will serve this purpose.

Your adviser must give you all related documents and information regarding the plan you are going to take. Otherwise, you lead to make the evil program.

When you are taking a pension plan, it should be able to meet the requirements of the future. Choosing the right pension plan means a perfect scenario where today’s investment will meet the future’s expenditures. If your project fails to do that, then it is not appropriate.

The right plan is all about to have an encounter with the risk factor but with a cover shield of a secure pension plan. Your adviser should convey the risk factors and should take appropriate measure.