We come across a lot of situation where senior citizens suffer due to the misuse of pension scheme. It’s a planned fraudulent activity. And selling unwanted pensions are easy way to cheat. Retirement time is the best time for enjoyment. But there are lot of bitter experiences like mis sold pension that troubles.
Senior citizen love to spend their worry-free times after 60. They try to avoid deadlines at work, stressful commute to work and coworker issues. False pension scheme can interrupt and cause major disturbances in life. When they are aware of the situation, they find it difficult to approach the right team. They run here and there to find a possible solution to get their investments back.
Today, let’s share some pointers that would help in the prevention of such incidents at bay.
“Guaranteed return” – Never run after such policies
When you hear the term ‘guaranteed return’, you need to think twice. 90% of the fake pension plan sellers would focus on promoting the plans with this fake quote. 7 out of 10 senior citizens invest in such traditional plans and end up with a mis sold pension. Such plans come with high premium amounts. Hence, focus on the plans rather than the guaranteed return concept.
Already mis-sold the policy!
As soon as you realize that the plan or policy is mis-sold, make a quick move to return the policy. You can also look for surrendering the policy or turn it into a paid-up policy if it’s a traditional one. In most cases, you need to pay 10 premium before you close the policy. If the pension plan expires before three years of returning, you are sure to lose the money. After three years, you may have to pay a hefty amount to close or surrender the policy
Say No to banks
Do not approach your bank for a pension policy. They may not provide you good ‘policies’. They often work together with an insurance company and try to sell a policy that’s adds value to them. And hence, the chances of misselling of pensions increases. Most of the banks do not provide a written document. There are no legal policy document that defines the entire rules and regulations. There’s a risk here. The banks refuse to take any responsibility on the mis-sold pension. The absence of documents and signature will leave you distressed.
The senior citizens look for a regular income at the age of retirement. When the investments are mis-sold, it is definitely a fraudulent practice. So, look for a proper pension plan before investing your silver years. There are many agents and agencies who can assist you with choosing the best plans. You may also approach them in case of mis-sold documents.