Negligent Pension Advice

Ensuring you have enough money to live a comfortable lifestyle in your retirement is a huge concern for most people. With new rules changing state pensions, many people feel they can no longer rely on their state pension and are seeking financial advice about how best to utilise their private / occupational pensions.

You may have found that you were approaching retirement and wanted advice about what to do with your existing pension or you were advised to transfer out of your occupational pension. Pensions are complex products and the products offered by the market can be a minefield, so many people turn to financial advisers for help and guidance (and often pay a hefty fee for this advice).

Advised to Invest in a SIPP?

In too many cases we have found that inexperienced people have been negligently advised to invest their pension pots into Self Invested Pension Plans (“SIPPS”) or high risk pension investment funds which are simply too complex, risky and inappropriate for them. As a result, many have lost significant sums from their pensions which has had serious consequences on their retirement plans and income.

Banks, building societies and financial advisers have been highlighted in the press in recent years for providing elderly customers with negligent pension advice and as a result, those customers have been eligible for compensation for the losses they have suffered to their pension.

Our expert professional negligence solicitors have experience in acting for clients who have been given poor pension advice.

Case study

Mrs B, an elderly lady who was approaching retirement and had no other private pensions in place, was relying on her pension for a steady income in her retirement. She sought advice about purchasing an annuity but was instead advised to transfer her existing low risk personal pension plan into a high risk SIPP and incurred high fees and charges for doing so. A few years later when she decided to seek further advice about purchasing an annuity at that stage, she found she had lost almost 40% of her pension pot. One of our team was able to assist her in bringing a claim against the financial adviser and secured a swift and  favorable settlement sum.

Did you receive poor pension advice?

There are many instances when someone may have  been given negligent advice by their financial adviser in relation to their pension.

For example, if you advised to:

  • Invest your pension into a high risk pension investment fund, which you were not aware was high risk or was not in line with your circumstances and objectives at that time;
  • Invest into a risky SIPP which has not performed as you were advised;
  • Purchase a poor returning annuity;
  • Transfer into another pension unnecessarily and had to pay fees for doing so. This could be evidence of “churning” whereby the adviser receives heft commissions;
  • Contribute into a pension which is now worth less than the money you have paid into it

Then you may have a claim in negligence against the adviser for compensation.

If you believe you have been negligently advised in respect of your pension and have lost out financially as a result, either through the diminution in value of your pension and/or the loss of return you could have made on the pension during that period, you may be able to claim compensation to recover your losses.

Free Initial Consultation

If you feel you have been given negligent advice in respect of your mortgage, please contact our specialist professional negligence team now. We have considerable experience acting for clients in claims against financial advisers for negligent advice relating to pensions and other investment products.

Following an initial consultation we can advise you of the next steps we consider are appropriate in your circumstances. We can make a request to the pension provider, adviser and/or broker for information about your pension and the advice you were given. This may show that the advice they gave was insufficient or bad advice which may then enable you to bring a claim for compensation.


There are time limits to bring a professional negligence claim. You have 6 years from the act of negligence or 3 years from the date of knowledge to start court proceedings for a claim for professional negligence. The test for ascertaining the date of knowledge is when a reasonable person ought to have realised that there was a risk that negligence had occurred. There is a long stop date of 15 years from the act of negligence after which a claim may not be brought regardless of the date of knowledge. If you do not bring your claim in time, then your claim will usually be lost forever.

Funding Your Claim

We offer a number of options to fund professional negligence claims including Conditional Fee Agreements and fixed fees.

See If You Can Claim Now

Simply call our specialist professional negligence solicitors on 0330 134 2582 or e-mail us at to discuss whether you have a mis-sold pension claim.


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