If you worked for British Steel, you earned a good salary and a reliable pension. Over the years, you contributed to a final salary pension that would support you in your retirement years. However, many retired British Steel employees have been tricked into missold salary swaps. Did this happen to you?
The Financial Conduct Authority (FCA) has raised the alarm bell about missold DB transfer products. Independent financial advisers, some of them working for the most trusted names in the country, gave negligent advice. They convinced pension holders to swap their sought-after final salary scheme to inferior private schemes, all so they could take commissions from the cash pay-outs.
Some advisers did this unwittingly – they provided poor advice because they did not understand the products. However, in many cases, independent financial advisers did this on purpose to earn commissions. They were only paid on a “contingent fee” basis, so they only earned money if they switched their pension, causing them to put their income ahead of your best interests.
Were you the victim of a missold salary swap? Find out if you are entitled to defined pension compensation – read ahead.
British Steel employees received enviable pensions. These were often final salary pensions, which keep pace with inflation. When the cost of living increases, your monthly income increases as well, and they don’t have fees or extra costs. Best of all, a final salary pension (also known as a defined benefit pension) lasts as long as you live.
As you can imagine, these pensions are extremely valuable. This high value has led greedy financial advisers to pressure pension holders into missold salary swap agreements in favor of fixed pensions. Fixed pensions are an inferior product. They include high fees, and they don’t keep up with inflation. They draw from a limited pot – when the money is gone, it’s gone. You could be left destitute in your golden years.
So, how did financial advisers benefit from missold salary swaps? When you trade in a final salary pension, you get a ‘Cash Equivalent Transfer Value’ (CETV). You use this cash payout to invest into a fixed pension you can draw from when you turn 55. Dishonest financial advisers take a significant cut off this CETV and then walk away. They don’t warn clients like you about the risks of pension transfers, and you end up paying the price.
It is very rare for a final salary transfer to benefit you. A reputable financial adviser is unlikely ever to recommend this option. Thankfully, you might be entitled to make a final salary transfer claim. If successful, this final salary compensation can help you recoup some of the money you were swindled out of by your missold salary swap.
Allegiant can help reverse some of this damage and help you get the defined pension compensation you deserve.
To have your prospects assessed by our specialist team, simply fill in our online form.