Mis-Sold Pension Transfer – How It Can Happen
Those looking for fixed income in retirement are unlikely to find that a pension transfer is in their best interest. Pension transfers are risky and complex; they also require you to forfeit valuable pension benefits for an uncertain future income.
There is no guarantee with a pension transfer that you will be better off and under certain circumstances the consequences can be disastrous – particularly where you are wrongly advised to make a pension transfer.
In cases such as this, we can help and support you in making mis-sold pension transfer claims for compensation. One call is all it takes to find out whether we can help you today.
However, the law is in place to ensure that you are protected. If you have been mis-sold a pension transfer, that is where you transferred your pension after being given not enough information or poor advice; you could claim compensation.
What is a Pension Transfer?
A pension transfer lets you forego your occupational pension, such as final salary pension, along with all the benefits associated with that pension, in return for cash that is invested in another type of pension scheme.
The main issue with pension transfer is that the return you will receive depends on how you invest the pension. This means you have no guaranteed income for when you retire. By transferring your pension, you could lose all your retirement savings. Furthermore, the transfer is irreversible, mean that you will be unable to buy back into your occupational pension and the associated benefits.
As a result of these risks, there are only very limited circumstances under which a pension transfer taken from a final salary scheme is a logical and sensible choice. As a result, pension transfers have been widely mis-sold.
Have you Been Given Enough Information Before Accepting a Pension Transfer?
As a result of the potentially catastrophic consequences for you retirement income, it is a legal requirement that you receive proper advice from a transfer specialist before accepting a pension transfer. Your pensions adviser must:
Hold the appropriate qualifications to give advice on pension transfers
Have been given specific permission from the FCA to provide advice
Give you with all the information you need to make an informed decision
Offer their opinion, based on clear reasons as to whether the transfer is in your best interests
Before a pension transfer takes place, your adviser must fully understand your circumstances and be confident that you are comfortable and understand the risks – this includes having enough financial resources should anything go wrong.
They must be sure that you have a solid plan for what to do with the cash once it has been freed up. You are entitled to up to three months to consider whether to go ahead with your transfer.
If your adviser fails to do these things, you may have been mis-sold your pension transfer and could be eligible to claim for compensation with our solicitors.
Have I Been Mis-Sold a Pension Transfer?
Listed below are some of the common scenarios which may mean that you have bee mis-sold a pension transfer. This include:
Where your final salary scheme was your main or only source of retirement income
Where you were not given a full explanation of the crucial risks involved in accepting the transfer
Where you were actively encouraged to transfer when doing so was not in your best interests
Where the transfer value was little more or less than the income, you would have received if you had not taken the transfer
Where you are uncomfortable with, or lack experience in managing and mitigating investment risks
Contact Our Mis-sold Pension Transfer Claims Solicitors
As a result, of the complex rules and potentially life ruining consequences of pension transfers, the public rely on professionals for advice. Where these professionals take advantage of this or the advice is not sound this could result in making decisions that are not in your best interests. It is important that those responsible for any financial loss you have suffered are held to account for their actions.
Here at Expert Pension Claims, our solicitors can help you claim compensation where you have been mis-sold a pension transfer. We operate on a no win, no fee* basis and could recover thousands of pounds owed to you as a result of a mis-sold pension transfer. Call us now or fill out our online contact form and one of our expert team will get back to you right away.