Many people can make a claim against a final salary pension transfer that was made following the wrong sort of advice of a financial adviser. So, if you think you’ve been mis-sold pension transfer products, contact our team today.
Final Salary Pensions
The Financial Conduct Authority (FCA) regulates the way that such transfers can be made. If you have received inappropriate advice, then you should talk to us about the next steps to take.
Not everyone has a final pension salary, and you probably only have this sort of pension if you’ve worked for a very large organisation or within the public sector. People will then receive a final salary pension based on how long they contributed to the pension fund, the accrual rate of the scheme and, most importantly, what their salary was at the point they left the organisation. In most cases, the pension pot available to you is multiplied by the accrual rate and your final salary figure to come up with your annual pension income.
Other final salary benefits might include things like death-in-service payments to family members and a full pension being available should you fall ill and not be able to complete your contributions right up until your retirement date.
A finally salary pension is low-risk and carries many benefits, yet some people have transferred their pension pot into other schemes. While this may also be beneficial, you may have been mis-sold pension transfer opportunities that have led to financial issues.
Reasons For Final Salary Pension Transfer
There are some good reasons to transfer your final salary pension into another pension plan. You might want to access a lump sum, for instance, and only be able to do so once you have switched pension products.
That said, even when you want a cash sum to be paid out, knowing whether this is the right course of action is not something you can do in isolation from the rest of your financial situation. In other words, professional guidance should always be sought from an independent financial adviser before deciding to go through with a final salary pension transfer.
Health, Wealth & Pension Transfers
Some people may find it easier – and better in the long-term – to access equity from their home rather than to transfer their pension to an inferior one. A pension transfer might suit someone else but may not be in your best interests because of family commitments, health, and age. The picture is often a complicated one which is why there are legal restrictions on what can be done and what a defined contribution pension actually is.
A recent survey by the FCA found that half of such pension transfers did not receive the correct professional advice, which is why so many people have gone through the process and ended up being disappointed. In this case, they often seek legal advice in order to make a claim.
Final Salary Pension Transfer Claim
Thousands of complaints to the Financial Ombudsman as well as the FCA has led the UK’s authorities to crack down on mis-selling within the pension industry. Those who don’t comply may be forced to reimburse you for losses if a successful claim is made. Thousands of former NHS and local authority employees have made final salary pension transfer claims and recouped at least some of the benefits they would have otherwise received had they not been advised to opt-out of their original pension scheme.
Even if you chose to transfer your pension, knowing the potential risks does not mean you were not mis-sold and that a claim is possible. Negligent selling can even be the case if your current pension scheme is continuing to perform well. Contact our team at Next Gen Solicitors today for more information and to submit a compensation claim.