Some tobacco companies like Imperial Tobacco or British American Tobacco offered some of their employees what are now considered to be rare and valuable pensions: Final salary schemes.
Pensions like these are considered to be ‘gold-plated’, promising scheme members a guaranteed income in retirement, one that is safe and secure, and helps protect married families with death in service benefits.
Yet some financial advisers have persuaded people to transfer valuable final salary pensions like these, and not all of the advice they gave was right, or in their client’s best interests.
Financial advisers should be advising on the side of caution when judging whether a final salary transfer is in somebody’s best interests. After all, these are valuable pensions and leaving is usually a one-way street.
They have rules to follow to ensure people only transfer away in the rare situations where may actually be beneficial to do so.
Yet over the past 5 years, the number of pension transfers away from these types of schemes has skyrocketed, more than doubling between 2016 and 2017.
Many people who transfer final salary schemes don’t realise that:
Many financial advisers have been found to have given negligent financial advice that hurt their client’s retirement prospects and left them out of pocket, all will filling their own with transfer fees and commission!
Get Claims Advice have been fighting these bad practices by holding advisers to account with claims when possible, and using our knowledge and experience to back claims to the FSCS and Ombudsman to help clients get compensation.
Book a free initial assessment today by calling 01204 205 061, or using one of the contact forms on the website.Speak with a Claims Handler
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Moving a final salary or other defined benefit pension is rarely advisable, except in certain situations.
While moving your pension may earn your adviser big fees and commissions, you may lose more than you hoped: