Pension Drawdown Mis-Selling Claims — Unsuitable Drawdown Advice
Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.
TL;DR — Quick Summary
- ▸Pension drawdown can be mis-sold if the advice was unsuitable for your circumstances — particularly where a guaranteed income product would have been more appropriate.
- ▸Key red flags: low risk tolerance, fixed income needs, near-retirement, high charges, illiquid investments, or a DB transfer leading directly into drawdown.
- ▸A fall in drawdown fund value is not itself evidence of mis-selling — what matters is whether the advice was suitable at the time.
- ▸Claims arising from DB transfers followed by drawdown may cover both the transfer advice and the drawdown arrangement.
- ▸Time limits apply — the clock may run from when you knew or should have known the advice was unsuitable.
Pension drawdown gives retirees flexibility over how and when they take their pension income. But that flexibility comes with investment risk — and for many people, drawdown is not the right choice. If you were advised to go into drawdown and your circumstances at the time meant a different arrangement would have been more suitable, you may have grounds for a compensation claim.
Quick Answer
Pension drawdown can be mis-sold where the advice did not properly account for your risk appetite, income needs, or capacity for loss — or where a guaranteed income product would have been more appropriate. Contact us for a free review of your situation.
Factors That Can Make Drawdown Advice Unsuitable
Drawdown After a DB Pension Transfer
Many mis-selling cases involve a two-stage problem: an unsuitable recommendation to transfer out of a defined benefit pension, followed by an unsuitable recommendation to invest the transfer value in a drawdown arrangement. In these cases, the claim may encompass:
- The unsuitability of the DB transfer advice itself
- The unsuitability of the drawdown arrangement — its investment strategy, risk level, or charges
- Any high-risk or unregulated investments held within the SIPP drawdown fund
We assess the full picture of what was recommended — including any DB transfer that preceded the drawdown arrangement. See our guides on defined benefit transfer claims and mis-sold SIPP claims.