Working for Royal Mail is a rewarding career with many benefits, including an enviable final salary pension. Did your financial adviser suggest you switch your final salary pension to a private pension scheme? If so, you have likely mis-sold salary swap products. If you received negligent advice, you could be eligible for defined pension compensation. The expert Allegiant team can help.
The Financial Conduct Authority (FCA) knows there is a problem with financial advisers and missold DB transfers. Unscrupulous financial advisers gave Royal Mail pension holders bad advice and switched them to unsuitable pensions and risky private schemes. These missold salary swaps lost their clients’ money and spoiled their retirement plans.
In some cases, independent financial advisers were only paid for their work if they switched their clients to new pension plans, even if those pensions were unsuitable. Did the same thing happen to you?
Royal Mail offered their employees at least three different pension plans: one up until 1987, one up until 31st March 2018, and the most recent one from 1st April 2018. Their earlier pension schemes offered clients a desirable final salary pension. These are increasingly rare pension schemes that offer retirees a guaranteed income in their golden years. Final salary pensions are pegged to inflation and last as long as you live.
Final salary pensions are obviously a very desirable pension to have – and they are equally valuable to scam artists. Financial advisers can get paid handsomely for transferring your pension to a private scheme. They get paid a hefty commission for missold salary swap products, taking a piece of your ‘Cash Equivalent Transfer Value’ (CETV). This CETV is meant for you to invest in a fixed pension, but dodgy advisers end up taking a big chunk of this money.
Fixed pensions are deeply flawed – they are finite and limited. That means when the money is gone, it’s gone. They also come with high fees and many admin costs, and they’re tied to the market. If the market takes a dive, pension holders can lose everything and end up destitute.
If you were missold DB transfer products, you could be eligible for a defined pension claim, and you could receive compensation to help you recoup your losses.
It’s extremely rare for pension transfers to benefit you, especially if you had a post office pension. If your financial adviser suggested a transfer away from your final salary pension, you were likely given bad advice. Thankfully, you could be eligible for a defined pension claim.
The expert team at Allegiant can help you with your final salary transfer claim, ensuring that you get the compensation to which you are entitled.
To have your prospects assessed by our specialist team, simply fill in our online form.