If you were ever employed by Nestle, you might have been enrolled in their DB Core or DB CorePlus pensions. While these pensions are now closed to new enrollees, they were career average pensions. These desirable schemes are a type of defined benefits pension, offering you a guaranteed income on your retirement years based on your Nestle salary.
These defined benefit pensions are rarely offered today, as they are expensive for employers. Even though they are highly desirable and lucrative, negligent financial advisers have convinced Nestle pension holders to transfer away from these schemes.
It’s very rare for this transfer to benefit the holder, but advisers tricked and misled people like you into making the switch. They promised significant returns when in reality the pension holder lost up to 50% of their future earnings.
Does any of this sound familiar? If so, you might be a missold salary swap victim, tricked by a greedy adviser. If your adviser didn’t follow the rules and regulations set out by the Financial Conduct Authority (FCA), you might be entitled to defined pension compensation.
Are you a missold DB transfer victim? Learn more about defined pension compensation – read ahead.
Nestle defined benefit pensions are very desirable, and most people would not benefit from transferring away from these schemes. That’s because they continue to pay out handsomely for the rest of your life. You’ll receive monthly payments based on your career average salary, which is pegged to the rate of inflation. Nestle’s DB Core pensions offer peace of mind and a stable, guaranteed income for as long as you live.
That’s why it is especially galling that independent financial advisers gave such misleading advice to their clients. They suggested that people like you trade in their Nestle DB pensions for a CETV – Cash Equivalent Transfer Value. They then recommended that you take the CETV and invest in a risky, inferior private pension scheme. But first, they take a hefty commission for themselves.
These private schemes don’t hold a candle to your Nestle DB pension. They are tied to the market and can tank when it dips. They also come with high fees and admin fees and could reduce your overall retirement income by more than 50%. Even Nestle themselves have issued a warning against these missold salary swap scams – don’t do it.
If your financial adviser suggested you cash in your Nestle pension for a CETV and a private scheme, you are likely the victim of a missold DB transfer. As such, you might be entitled to make a defined pension claim. If successful, you could receive defined pension compensation to help you recoup some of your losses.
To have your prospects assessed by our specialist team, simply fill in our online form.