Mis-sold annuity claims

An annuity is an income based financial product which has been purchased with an individual’s accumulated pension monies. The aim of an annuity is to provide a retirement income for either the rest of the individual’s life or, in the alternative, a defined set period.

Annuities broadly fit into two different types:

• Fixed period annuities – This type of annuity will pay for a set period. At the end of the defined period, you will receive a lump sum payment;
• Lifetime annuities – This type of annuity will pay an income to you for life. In some instances, you may be allowed to nominate a beneficiary to continue to receive payments after your death.

When approaching retirement, it is your right to have the opportunity to consider various types of annuity product, in order to obtain the best deal and a product which is most suitable for you.

Problems can arise, when the existing pension company you are involved with fails to advise you of your available options and automatically sells you one of its own products and/or fails to consider whether you might qualify for an enhanced annuity – payment of a higher income amount because of lifestyle or health conditions.

Examples of the potential mis-sale of an annuity  

As with the advice and sale of many financial products, the mis-sale of annuity products will stem from the failure of the advising company in taking into account your personal circumstances. Examples of a mis-sale might include the following:

1. Failure to consider the available market of annuity products in order to assess whether better products were available;
2. Not considering the pre-existing medical conditions at the time the product was purchased, which either the company, or adviser failed to take into account;

If you believe you may have been mis-sold an annuity, it is important that you gather all documentation concerning the advice you were given in order to evidence any potential mis-sale.

Please contact Hugh James for free and confidential initial advice with regard to your annuity product.