Many UK pension holders have been paying ongoing advice fees — often around 0.5% to 0.8% of their pension or investment value each year — for regular reviews and ongoing financial advice services. In some cases, clients received little or no evidence of these services being delivered, such as annual suitability reviews or meaningful ongoing support.

Under the Financial Conduct Authority (FCA) rules on fair value and the Consumer Duty, firms must deliver the services they charge for. Where they cannot demonstrate that the ongoing advice was provided, clients may be entitled to compensation in the form of a refund of those fees, usually plus interest.

The good news is that you do not need to use a claims management company (CMC) or solicitor to pursue this. You can handle the process yourself for free and keep 100% of any compensation awarded.

What Is Pension Compensation in This Context?

This type of compensation typically relates to ongoing advice charges on pensions (including SIPPs, personal pensions, or advised investment portfolios). The core issue is not usually the original investment advice, but whether you received the regular service you paid for over the years.

Common grounds for a claim include:

• No record of annual reviews
• Minimal or no contact from your adviser
• Fees charged without clear evidence of value or service delivery

The Financial Ombudsman Service (FOS) has considered many such complaints and, in upheld cases, often orders firms to refund the ongoing advice charges for the relevant periods, plus interest.

Step-by-Step: How to Claim Directly

Follow this straightforward process to maximise your chances while keeping full control and avoiding any deductions:

1. Gather Your Evidence Collect your pension statements showing the ongoing advice charges (look for lines such as “adviser charge”, “ongoing advice fee”, or “service charge”). Note the years the charges were applied and the approximate amount each year.

2. Contact Your Pension Provider or Adviser Write to the firm (preferably by email or through their secure online portal) explaining your complaint clearly. State:

   • You believe you were charged for ongoing advice that was not provided or properly documented.
   • You would like a full review of your file and a refund of the relevant charges plus interest.

   Keep a copy of your letter/email and any replies. Firms must usually respond within eight weeks.

3. Review Their Response If the firm agrees and offers a refund, check the calculation carefully. It should cover the periods without evidence of service and include appropriate interest.

4. Escalate to the Financial Ombudsman Service (FOS) if Needed If you are unhappy with the firm’s response, receive no reply within eight weeks, or the offer seems too low, refer your complaint to the FOS — this is completely free for consumers. You normally have six months from the firm’s final response letter to do this. The FOS is independent and can order the firm to pay compensation if it finds the complaint fair and reasonable.

You can start the FOS process online at financial-ombudsman.org.uk. Provide all your evidence and correspondence with the firm.

Why Avoid Claims Management Companies?

Claims management companies often contact pension holders offering to handle these cases on a “no win, no fee” basis. However, they typically take a significant percentage (sometimes 20–40% or more) of any compensation you receive. Since the direct route to your provider and then the FOS is free and straightforward, using a middleman reduces the net amount you keep.

Regulators have issued warnings about ensuring any fees charged by CMCs are fair and reasonable. Handling the claim yourself ensures you retain every penny of any redress.

How Much Could You Be Owed?

Amounts vary depending on:

• The size of your pension or investment pot
• How many years the ongoing advice charge was applied without sufficient service
• The exact rate charged (commonly 0.5%)

For larger pots and longer periods, refunds can run into thousands of pounds. Interest is usually added (note that from January 2026, new FOS cases use a rate based on the Bank of England base rate plus 1%, applied simply).

Important Tips for Success

• Act promptly — records become harder to obtain over time.
• Be polite but firm in your communications.
• Keep detailed records of everything.
• If your pension is a defined benefit transfer or involves other complex issues, the calculation may differ — consider free guidance from MoneyHelper  before proceeding.
• This process is about service delivery and fair value, not necessarily challenging the investment performance itself.

Key Takeaways

• Many people are entitled to refunds for ongoing advice fees where the promised service was not delivered.
• You have a clear, free route: complain directly to the firm, then escalate to the FOS if necessary.
• By claiming without middlemen, you keep the full compensation amount.
• The FCA and FOS exist to protect consumers in these situations.

If you think you may have paid for ongoing advice you did not fully receive, review your statements and consider contacting your provider to explore your pension compensation options. For general guidance on pension complaints, you can also refer to official sources.