- Self Invested Personal Pension (SIPP): Often set up to hold high risk, illiquid, underperforming alternative investments, with higher charging structures.
- Final Salary transfer: With in-built guarantees it is rarely suitable to transfer this type of pension to any other form of Pension product or provider.
- Free Standing Additional Voluntary Contribution (FSAVC): In the vast majority of cases ‘in-house’ AVC’s have proven to be far more suitable.
- Small Self-administered Scheme (SSAS): Used in the same way as SIPP’s, and often set up in a contrived fashion to hold the same type of products.
- Qualifying Recognised Overseas Pension Scheme (QROPS): Although designed for people from the UK intending to retire overseas, many were sold on the promise of cash payment upon transfer, leading to substantial tax charges (up to 55%) and therefore poor advice.
- Occupational Pension Scheme (OPS): Often set up by unregulated entities to circumnavigate the regulated (advice) process.
When interest rates dropped, alternative investments were sought (and aggressively promoted) to assist in building up pension (and cash) funds to achieve the desired capital growth and/or level of income in retirement. With high commissions and associated risk, such investments have often fallen well short of delivering on promises made. To be fair, some have fallen foul of unforeseen political and/or tourism changes, where the orchestrators have not intended to lose investor’s money. However, others have been constructed using convoluted, engineered business models, designed to attract investor funds into a company/structure, where the investor has little control, nor assets to secure their investment, often resulting in extreme, or even total loss.
More concerning is that people have been encouraged to invest in such high-risk products, by raising money on their residential properties. In extreme cases, people in their late seventies/early eighties have been talked into raising funds, even utilising ‘equity release mortgages’ to do so.
- Advice to re-mortgage residential properties on an ‘interest-only’ basis, to raise funds to invest in high risk (alternative investment) property and land schemes, in the UK and abroad. Click here for more information……
- Advice to re-mortgage residential properties on an ‘interest-only’ basis, to raise funds to debt consolidate loans, credit and/or store cards. Click here for more information……
For more information, please refer to the Pension, Mortgage and PPI sections, which you will find on the home page of this website.