Self-Invested Personal Pensions or SIPP owners might find themselves making a claim for mis-sold pension investments in the next few years.
Claims management expert Rob Ridge from Money Redress stated Britons are unaware about the scandal surrounding SIPPs. He speculates it may deal further damage than mis-sold PPI as those mis-sold investments can receive a maximum of £50,000-£150,000 for every recompense.
Ridge speculates the SIPP scandal will reach heights above £10 billion, which is 25% of the £40 billion payout for payment protection insurance.
The mis-selling storyline happens as so: Financial advisers out to scam savers will promise them massive 20 per cent returns on their pensions reinvestment incrementing each year. The get-rich-quick scheme involves seemingly feasible investments such as airport parking spaces, holiday properties, and green energy projects.
While the saver receives an increment to their pensions, it is not as high as their initial investment. The agreement will never guarantee returns by the promised deadline.
Experts and observers found the SIPPs circumstances similar to the initial discovery of payment protection insurance mis-selling. Ridge believes the impact of the new scandal to the newly-recovering financial services industry is unprecedented.
PPI claiming is set to end on 29 August 2019. With the new scandal looming on the horizon, it is possible the industry’s consumer confidence rating will once again be at an all time low.