Claims for negligent final salary pension transfers
Final salary pensions are some of the most valuable retirement schemes around, but that doesn’t stop many financial advisers telling their clients they would be better off if they transferred out of the scheme into one of the many private pensions available on the market.
In rare conditions, this might be the right advice, such as if the client has a shortened life expectancy, no spouse and no dependents.
But in a huge number of cases this may have been the wrong advice entirely.
In fact, while many people and companies may have benefited from your final salary pension transfer, studies have shown that you could have lost a lot of money in the long run…
Who can make a claim for a final salary pension transfer?
If you took regulated advice from a financial adviser to transfer your final salary pension, and it can be proven that the advice given was negligent and not in your best interests, then the chances are you can make a claim.
Financial Advisers who give pension transfer advice have strict rules to follow, laid out by the watchdogs at the FCA, to ensure that the advice they give is in their client’s best interests.
But final salary pension transfers are so rarely beneficial to the client that the FCA tells financial advisers who advise on such transfers to start from the assumption that a transfer is the wrong way to go.
If you’ve transferred out of a defined benefits pension, you may simply not realise how much money you’ve lost in the long-run by giving up a guaranteed income in retirement – one that is index-linked, with death in service benefits at doesn’t cost you in annual fees to run.