The Financial Services Compensation Scheme (FSCS) paid out a staggering £405 million to 69,980 customers of defaulted firms last year.
The figures, first published in the lifeboat fund’s annual report and accounts, represent a £30 million inflation from 2016/17.
Claims regarding Sipps continue to balloon, increasing from £105 million to £112 million across the year, a total increase of 7%.
FSCS chief executive Mark Neale states: ‘Just over a fifth of the claims we handled in 2017/18 arose from pensions advice – mainly relating to the transfer of retirement savings out of an occupational scheme into a SIPP with a view to making illiquid and risky investments.
‘This rising tide of pension-related claims underlines the risks that consumers face as they make increasingly complex choices about financing retirement and, therefore, the importance of raising awareness of FSCS protection outside of deposits.’
If you have reason to believe you were mis sold sips please contact Claiming 4U at your earliest convenience.