Mining is one of the UK’s most important jobs. Miners are often compensated well and offered lucrative pension benefits – Mineworkers Pensions have historically been final salary pension schemes. Considered the gold standard, final salary pensions continue paying you for the rest of your life; there is no limit to the pension pot.
However, some Mineworkers Pension holders have been misled and missold DB transfer products. Were you talked into transferring your Mineworkers Pension to an inferior scheme? If so, you’re not alone.
The Financial Conduct Authority (FCA) Has issued a warning to final salary pension holders across the UK. They warn that independent financial advisers offer negligent advice to pension holders like you, tricking them into transferring their defined-benefit pensions for inferior private schemes. These advisers fail to consider whether a missold salary swap was suitable for individual clients.
In some cases, independent financial advisers only earn income on a ‘contingent fee’ basis, which means they only get paid if they process a transfer. This payment structure leads many advisers to put their own income above their clients’ best interests. Does this sound familiar?
If you are the victim of a missold DB transfer, we can help. Learn more about defined pension compensation – read ahead.
Mineworkers Pensions have long been considered some of the best in the country. In addition to being a final salary pension that continues to pay out for as long as you live, they also offer unique spousal benefits. If you pass away before you are able to draw from your pension, your spouse will receive 50% of the entire pension’s worth.
Final salary pensions (also known as defined benefit pensions) are pegged to the rate of inflation. When the cost of living goes up, so too will your monthly payments. They have no annual fees and only charge low administrative costs.
As you can see, a Mineworkers Pension is very desirable, making them the target of many scams. Independent financial advisers continue to give misleading advice to many Mineworkers Pension holders, convincing them to transfer their pensions to inferior private schemes.
Pension holders are convinced to trade in their final salary pension for a ‘Cash Equivalent Transfer Value’ (CETV). This CETV can then be used to invest into a fixed pension, but not before the adviser takes a big commission off the top.
Experts warn that cashing in for a CETV is a very risky move – you can lose more than 50% of your pension earnings later in life. Private pensions are volatile, finite, and limited – when the money is gone, it’s gone. You could end up destitute in your golden years – it’s not worth the risk.
Missold salary swap schemes and final salary pension transfers are risky and ill-advised in almost all situations. If your financial adviser recommended this option, they were likely offering negligent advice. Thankfully, you can now make a defined pension claim. If successful, you can recoup some of what you lost.
If you are a missold DB benefit victim, Allegiant can help you complete your salary swap claim and get the compensation to which you are entitled. To have your prospects assessed by our specialist team, simply fill in our online form.