A final salary pension (also known as a defined benefit or “DB” pension) is often the holy grail of pensions. A final salary pension offers a guaranteed income.
Remarkably, many independent financial advisers persuaded customers to switch their pensions away from final salary / DB pensions, in favour of high risk investments.
The FCA has expressed its concerns about such negligent advice, which amounts to mis-selling by the financial adviser (who no doubt took a commission for switching the pension). It is enlightening to learn that many advisers only get paid if a pension switch occurs. This type of “contingent charging” raises significant conflicts of interest.
Baroness Altmann summed up the issue when she told the FT
“The problem with contingent charging is clear. If advisers are paid nothing unless they recommend a transfer then it is obvious that there will be bias to recommend the transfer. What the customer needs is an independent assessment of whether a transfer is the best course of action for them to take.”
Here at Allegiant, we can assist you make a final salary pension transfer claim if you were incorrectly advised. With awards in excess if £50,000 not uncommon, a final salary pension claim can reverse the damage, and put you back in the position you would have been in but for the poor advice.
Signs of Final Salary Claim mis-selling
1 Rushed advice (some industry commentators believe an appropriate pension assessment should take over 25 hours)
2. Advisors relying on “flexibility” being a reason to switch
3. Pension being your only planned income during retirement.