Working for the country’s railways is a rewarding career that comes with an excellent pension. However, that pension makes railway workers a prime target for scams and financial advisers. If you were advised to switch your railway pension to a private pension scheme, you have likely mis-sold DB transfer products. If this is the case, you could make a defined pension claim and receive compensation.
The Financial Conduct Authority (FCA) is now actively warning pension holders to be wary of independent financial advisers trying to transfer valuable final salary pensions to risky private schemes. In some cases, ill-informed or negligent financial advisers missold salary swaps without considering their suitability or risks.
But in other shocking instances, financial advisers knew exactly what they were doing, and they provided erroneous advice on purpose. They only got paid on a “contingent fee’’ basis, and so they transferred railway pensions into inferior schemes to reap the financial benefits. Their clients lost money and lost out on the valuable stability of their retirement years.
Were you the victim of a missold salary swap? If so, you may be eligible for a final salary transfer claim, and we can help.
In the past, railway workers often received lucrative final salary pensions. Final salary pensions, which are also known as defined benefit pensions, are particularly desirable because they continue to payout no matter how long you live. This is in contrast with fixed pensions, which are finite and limited. When you run out of money in the pot, you’re out of luck.
Final salary pensions are pegged to inflation, so you always have enough money to comfortably live on, even when the cost of living increases. On the other hand, private pensions are static and payout a set amount each month, even if that amount is no longer sufficient. They’re also subject to high fees and admin costs.
The valuable nature of final salary pensions makes them a prime target for scam artists. You can trade-in your defined benefit pension for a ‘Cash Equivalent Transfer Value’ (CETV) and receive cash in advance. Some financial advisers have convinced their clients to take this CETV and invest in a private pension, leaving them with a lump sum of cash.
It’s important to note that it is incredibly rare for this type of salary swap to benefit the pension holder. Other than in cases of terminal illness, you’re almost certainly losing money in the long run. However, unscrupulous financial advisers specifically duped their clients into missold DB transfers. Did this happen to you?
If so, you could be eligible to make a defined pension claim that will help you recoup what you lost. Allegiant can help you reverse the financial damage and get the final salary transfer compensation to which you’re entitled.
To have your prospects assessed by our specialist team, simply fill in our online form.Apply Now
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Pre complaint investigation and analysis. No paperwork? Don't Worry! We could still help.
Once we've assessed claim prospects, we make a pension complaint to the Ombudsman or FSCS, where appropriate
Pension complaint response received. We'll carefully analyse the response and advise you on how to proceed.
If appropriate resolution cannot be reached with a live firm, and we disagree with their stance, we will refer the claim to Ombudsman on your instruction.
As of the 1st March 2022 we have implemented a new fee structure which we have explained below. If you signed your contract with us prior to the 1st March 2022, please refer to your signed claims pack for our previous fee terms.
Our fees are owed upon a successful claim and will depend on the Gross Compensation you receive. “Gross Compensation” means the amount awarded to you whether this is paid directly to you or paid into an investment or pension, and prior to any deduction of any income tax due to HMRC on your award. Please refer to the definition of “Gross Compensation” and Section 5 of our Terms of Engagement for further information including a table showing how our fees work in different scenarios.
If successful, your fee will be calculated based on which band your redress falls into and will be charged by whichever is the lowest of:
The below table outlines the redress bands, the maximum percentage rate of charge and the maximum total charge is for each band.
|Band||Redress||% Charge (with VAT)||Maximum charge (with VAT) (£)||Maximum charge (without VAT) |(£)|
|1||1 – 1499||36%||504||420|
|2||1,500 – 9,999||33.6%||3000||2500|
|3||10,000 – 24,999||30%||6000||5000|
|4||25,000 – 49,999||24%||9000||7500|
Examples of how this would work in practice:
|Band||Lower example||Higher example|
|1||You receive £100 in redress; our fee would be £36.||You receive £1499 in redress; our fee would be £504.|
|2||You receive £1,600 in redress; our fee would be £537.60.||You receive £9,999 in redress; our fee would be £3,000.|
|3||You receive £12,000 in redress; our fee would be £3,600.||You receive £24,999 in redress; our fee would be £6,000.|
|4||You receive £30,350 in redress; our fee would be £7,284.||You receive £49,999 in redress; our fee would be £9,000.|
|5||You receive £55,000 in redress; our fee would be £9,900.||You receive £100,000 in redress; our fee would be £12,000.|
Please note, the above fee examples are for illustration purposes only. They are not an estimate of the likely outcome or fee you will need to pay. Each claim depends on its own merits.
It is possible that our fee may become payable before you have access to your pension or investment which may result in you having to pay our fee from your own funds
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: [email protected]; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/compliance/cancellation.
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