Having some form of pension plan is essential; with life expectancy continuing to rise, many people will enjoy a lengthy retirement, and need some way of covering the costs of those later years. Generally, that means paying into a pension scheme, with the money invested in stocks and shares.
Unfortunately, hundreds of thousands of people across the UK have been convinced to transfer some or all of their money into unsuitable investments.
Hugh James’ expert Financial Mis-Selling team will be able to guide you through the process to recover your money and can represent you on a “no win, no fee” basis. If you have been mis-sold a pension, or have been enticed to transfer out of a scheme speak to our expert financial mis-selling solicitors today, to find out how we can help you recover your money.
What is a Defined Benefit pension?
Sometimes known as a “Final Salary Pension” a defined benefit pension (DB) is a type of pension where the income pot that an employee receives is calculated based on the amount of years spent with that company and the salary received during that time. The main difference from other schemes is that the guaranteed benefits an employee receives when they retire includes a specific amount of money.
Why do people transfer out of Defined Benefit pensions?
Many people within these Defined Benefit pensions have been enticed to transfer out despite the clear advantages that these schemes provide.
Often this mis-selling begins with a phone call out of the blue. The person on the other end of the line will tell you about a fantastic, can’t miss opportunity. Not only will the supposed returns sound attractive – particularly in the current low interest rate environment – these firms will often promise to guarantee those returns for the first couple of years.
A guaranteed return of 14% for two years – who wouldn’t want that?
It doesn’t stop with a phone call either. Investors may be invited to attend professional seminars, where they are convinced that they are dealing with experts who understand these investments and are being presented with a legitimate opportunity. From 2015 people were allowed more flexibility over their pensions. This included the ability to transfer out of a DB pension and into an alternative pension scheme. With the only safeguard being, that there are rules which dictate that that people with £30,000 or more in their pension pot are required by law to seek financial advice before transferring.
This has unfortunately led to some financial advisers offering unsuitable advice in order to gain higher commission rates. Regrettably, this has meant that many people have lost some or all of their pension as result of bad advice.
If you have received poor advice on a DB transfer, how do you claim compensation?
If you are concerned that you received bad advice to transfer your DB pension, then don’t panic. It may be possible to pursue a compensation claim against the advisers involved.
The first step should be to contact a specialist firm like Hugh James. Hugh James will be able to handle the whole claims process for you and will be able to advise you on the available routes of redress.
Time is of the essence when it comes to raising these complaints, as there are strict time limits in place. Generally speaking, you have six years to claim from the date of your pension transfer. However, if you are outside this period, it may still be possible to make a complaint if it is less than three years since you knew or could reasonably have known that you had cause for complaint.
Types of Defined Benefit pensions that may be affected
Below is a list of the employers and schemes that offered or offer final salary pensions. If you have been advised to transfer out of any of these pension pots, you may be entitled to claim.
- Armed Forces Pensions
- BAE Systems Pensions
- Barclays Pension Scheme
- British Airways Pension
- British Steel Pension Scheme
- BP Pension Scheme
- BT Pension Scheme
- Dolphin Pension Trust Claims
- Electricity Supply Pension Scheme
- Greater Manchester Pension Fund
- Jaguar Land Rover Pension
- Local Authority Pension Scheme
- Marks & Spencers Pensions
- Merseyside Pension Fund
- Mineworkers Pension Scheme
- Nestle Pension Fund
- NHS Pension Transfers
- Police Pension Schemes
- Railway Pensions
- Rolls Royce
- Royal Mail / Post Office Pension Scheme
- Strathclyde Pension Fund
- Teacher’s Pension
- Tobacco Company Pension
- Transport For London
- Universities Superannuation Scheme
- West Midlands Metropolitan Pension
- West Yorkshire Pension Fund
Why using a DB transfer claim solicitor helps
Using a specialist solicitor not only means that you don’t have to spend time considering and dealing with all the relevant paperwork it also helps ensure that all appropriate points are put forward thereby maximizing the chances of a successful outcome.
We have seen numerous cases in the past where mis-selling victims have pursued a legitimate claim themselves, only to have it turned down due to a technicality or because key grounds have not been particularised. They may then have given up the case, even though they should have been entitled to some form of compensation.
You can contact us today using the phone or envelope buttons on this page for a free, no-obligation consultation about your case. And if you want to proceed, we will represent you on a no win, no fee basis.
Neil is head of the firm’s group actions and financial mis-selling teams, specialising in handling claims for financial mis-selling relating to energy contracts, pensions, investments and timeshares.
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