Can you make a claim for a mis-sold pension transfer?
Final salary pension transfer claims explained
THE ELECTRICITY SUPPLY PENSION SCHEME
If you joined the Electricity Supply Pension Scheme before April 2006, then that chances are you joined the Defined Benefits section, offering your a final salary type pension to retire on.
But perhaps more importantly, if you’ve transferred that pension into a private scheme, you may have lost money in the long run, and may have been mis-sold.
This is because Defined Benefit pensions like those on offer from the Electricity Supply Pension Scheme Defined Benefit section come with some pretty hard-to-beat benefits, such as the promise of a guanranteed income for the whole of retirement, no matter how long you live for.
WHO IS ENTITLED TO AN ELECTRICITY SUPPLY FINAL SALARY PENSION?
The scheme was opened in the 1990’s following the privatisation of the electricity industry, and if you worked for one of the participating electricity businesses before April 2006, the chances are you may well have/have had one of these pensions.
But many people are likely to have transferred away from the scheme, tempted by the idea of trying to earn more money for retirement by risking their otherwise secure pension on an often volatile market.
CAN PEOPLE MAKE A CLAIM FOR A NEGLIGENT PENSION TRANSFER?
If a case can be put forward that shows the transfer happened because of negligent financial advice from a regulated advisers, and the transfer is likely not in the individuals best interests, then yes, a claim may be a way forward.
The FCA has a set of extensive and strict rules about what makes a final salary pension transfer a suitable option. In most cases, it is up to a financial adviser to follow these rules to test the suitability of any proposed transfer, always starting from the assumption that it would be the wrong decision and working from there.
But as with most Final Salary pension schemes, there are often advisers in the picture who may avoid some of these rules, or simply apply them negligently, meaning that people who would have been better off staying in the scheme end up transferring away, putting their retirement at more risk than they might realise, and earning that adviser a tidy fee.
Studies have shown that people who transfer their final salary pensions as early as ten years before they intend to retire, may lose up to 50% of their total pension value in the long run, as the new pension will not likely promise a guaranteed income, and losses may be made through the investments market.
HOW CAN PEOPLE FIND OUT IF THEY CAN MAKE A CLAIM?
Get Claims Advice offer a FREE initial assessment to test of signs of pension mis-selling, including for former members of the Electricity Supply Pension Scheme Defined Benefit section: a free chat with a specialist case assessor to examine the advice you received leading up to your transfer, to see if a claim can be made.
Did you know, we’re specialists in mis-sold pension transfer claims?
If you needed any more reason to choose Get Claims Advice, we’re experienced with defined benefit claims.
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