If you had a British Telecom pension and a financial adviser recommended that you switch pension schemes to a private pension, you may be the victim of a missold salary swap. If so, you could be eligible to make a final salary transfer claim. The team at Allegiant can help you get the salary swab compensation you deserve
Did you know that the Financial Conduct Authority (FCA) recently expressed their concern over financial advisers’ erroneous advice to swap defined benefit pensions to private schemes? It is very rare for a final salary pension swap to benefit you. If your financial adviser made this recommendation, they likely gave you negligent advice and missold DB transfer products.
In some cases, your adviser did not consider your suitability, resulting in flawed advice to transfer to a risky and unsuitable scheme. However, in many cases, an independent financial adviser is only paid on a “contingent fee” basis and only benefited if they switched you to an inferior pension product. Sadly, they put their own financial interests above their clients’ interests. Does this sound familiar?
If you were the victim of a missold DB transfer, you could be eligible for defined pension compensation – keep reading.
In the past, British Telecom employees were often offered a valuable pension option that is rarely offered today – a final salary pension.
Final salary pensions are also known as defined-benefit pensions. They are considered extremely desirable because they continue to pay out for the rest of your life, as long as you live. They also keep up with the rate of inflation, so that you can continue to live to the standard to which you are accustomed, and they don’t come with high fees or other associated costs.
All of these benefits make final salary pensions very attractive to unscrupulous independent financial advisers. They will encourage you to trade in your defined benefit pension for a ‘Cash Equivalent Transfer Value’ (CETV), from which your adviser will take a hefty commission.
You can then use this cash payout to invest in a private pension scheme, which is fixed and subject to market rates. Once this money is gone, it’s gone – plenty of pensioners have seen their hard-earned money disappear with one wrong turn of the market.
These kinds of pension swaps are rarely beneficial to the holder – instead, they are extremely risky. You’ll soon find out that you are a missold salary swap victim, and you’ve been sold a lemon.
If you were convinced into transferring your BT pension to a risky private scheme, you might be eligible to make a salary swap claim. If successful, you could recoup some of your financial losses with salary swap compensation.
We can help – with a successful defined benefit transfer claim, we can help reverse the damage and get you the defined benefit compensation that you deserve.
To have your prospects assessed by our specialist team, simply fill in our online form.