Working for one of the UK’s local authorities offers many benefits, including a good salary and a reliable pension. Until recently, most local authorities provided their employees a final salary pension, which keeps up with inflation and ensures you can maintain a good lifestyle in your retirement years.
However, some financial advisers out there recommended that people like you transfer their enviable final salary pension to riskier fixed pensions. If this happened to you, you might be the victim of a missold DB transfer (defined benefit), and you could be eligible for defined pension compensation.
The Financial Conduct Authority (FCA) has raised the alarm over the increasing number of missold salary swap cases they’re seeing. They warn that independent financial advisers are purposely convincing their clients to switch valuable final salary pensions for inferior private schemes. These clients lost money – some even lost everything and are now destitute in their retirement years.
These financial advisers are often paid on a “contingent fee” basis. They only get paid if they convince their clients to switch, and they take a cut of the Cash Equivalent Transfer Value’ (CETV). The client gets duped, and the financial adviser takes off with their hard-earned pension money.
Did this happen to you? If you were missold salary swap products, you could be eligible for defined pension compensation – read ahead.
Local authority workers do a wide variety of different jobs, including social worker, caretaker, housing officer, lawyer, gardener, refuse collector, administrator, and accountant. They share one thing in common – they benefit from the local authority’s pension scheme. Until recently, most local authorities offered final salary pensions, also known as defined-benefit pensions.
Final salary pensions are enviable pensions to have. They keep up with the rate of inflation, which means that you don’t have to worry about the rising cost of living, and they have low or no fees. Best of all, they continue to pay out as long as you live.
In contrast, fixed pensions are pegged to the market, which means their value fluctuates. When the money is gone, it’s gone – you might outlive the value of your pension. Even worse, private schemes often invest in risky funds, which means you could lose everything.
Obviously, a final salary pension is the best option for retirees. However, financial advisers talked many people like you into swapping their final salary pensions for a ‘Cash Equivalent Transfer Value’ (CETV). They promised high cash payouts and convinced them that a private pension would suit their needs.
This was terrible advice, and many people lost their retirement funds. Did this happen to you?
In almost all cases, pension transfers are the wrong choice, and no trustworthy financial adviser would recommend one. However, if you were missold salary swap products, you could recoup some of your losses with a defined pension claim. Our expert Allegiant team can help you access the final salary transfer compensation you deserve.
To have your prospects assessed by our specialist team, simply fill in our online form.