The Telegraph last week uncovered evidence of widespread miscalculation of pensions. This has led to insurers paying out to thousands of pensioners who have missed out on vital income over the course of their pensioner years. The savers who have been cheated out of pension payments are owed millions in extra payments as a result of being cheated out of compensation by insurers.
Aviva has now compensated more than 79,000 customers who it underpaid as a result of miscalculation relating to their funds. However, allegedly a number of large insurers giants, have been exploiting a loophole in the rules which allows them to calculate their customers pay-outs with low interest rates.
This means that customers who are receiving up to 10 years of losses as a result of miscalculation are being deprived of more than a third of the money they are rightfully owed due to the rule relating to interest.
Ensure Right Level of Compensation
The Government’s older workers’ tsar, Ros Altmann, urges anyone who has received an offer of compensation from their pension provider relating to errors or mis-selling to write to the firm to ensure that they are getting the right level of compensation.
Ms Altmann said: “It is important that when companies do make mistakes, customers are properly compensated in line with the rules of the ombudsman.
“Unfortunately most people have no chance of knowing whether they are being short-changed. It seems clear from reading the official documents that the appropriate rate for customers who have lost out when a firm has made a mistake is 8pc.”
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