Final Salary Claims
Final Salary Pensions
Do you believe you have been mis-sold a final salary pension transfer?
We may be able to help you understand both if you have grounds for complaint and to make your claim.
If you have grounds for complaint, we may be able to help you get your money back. While we’ll need to gather some details about the circumstances of your pension transfer, once we have what we need we’ll do the majority of the work for you.
While nobody knows the true extent to which final salary pension transfers have been mis-sold, if you have concerns about your transfer, you shouldn’t wait to see if your financial adviser writes to you.
Being mis-sold your pension transfer could hugely affect your retirement plans and leave you significantly worse-off.
If you require assistance with investigating and making a claim against your financial adviser, contact us and speak to one of our experts today.
What is a Final Salary Pension?
A Final Salary Pension, also known as a Defined Benefit Pension, is a retirement plan where the pension amount is based on the employee’s final salary and years of service.
Upon retirement, the individual receives a fixed income for life, providing a secure and predictable retirement benefit.
What are the benefits & risks of a Final Salary Pension?
Benefits of a Final Salary Pension:
- Secure and predictable income in retirement based on final salary and years of service.
- Employer takes on the investment risk, not the employee.
- Offers potential for higher retirement benefits, especially for long-serving employees.
Risks of a Final Salary Pension:
- Employer’s financial health affects pension payments.
- Limited flexibility in accessing pension funds.
- Potential vulnerability to inflation eroding the purchasing power of fixed income in retirement.
How were Final Salary Pensions mis-sold?
Final Salary Pensions were mis-sold through inadequate risk disclosure, unsuitable advice, high-pressure sales tactics, hidden fees, lack of understanding, and failure to fully inform individuals about the potential risks and implications of transferring from a Final Salary Pension to another scheme.
Numerous FCA reviews have highlighted shortcomings in the processes undertaken and advice provided by financial advisers.
However, the biggest concern is that many advisers recommended a pension transfer because they’d only receive a fee if a transfer took place, a practice known as contingent charging. It is, therefore, unsurprising that “no transfer, no fee” pension transfer schemes, in particular, came under the spotlight.
In July 2019, the FCA launched a consultation on banning contingent charging. The FCA said at the time, “We are concerned too many advisers are delivering poor advice, much of it driven by conflicts of interest in the way they are remunerated. In particular, the practice of contingent charging creates an obvious conflict.”
Which jobs come with Final Salary Pensions?
The most common Final Salary jobs are listed below
Teachers
Military
NHS Workers
Council Workers
Politicians
Public Services
Large Institutions
Museum Curators
What to do if you believe you were mis-sold a pension transfer
Your first course of action is to complain directly to the firm from which you received pension transfer advice. You must write to the firm outlining that you are making a complaint because you believe your pension transfer was mis-sold and demonstrate the reasons why.
Ensure you include any evidence to support your claim and ensure it’s clear to which elements of your complaint each piece of evidence relates.Your financial adviser must respond within eight weeks. In response, your financial adviser will tell you if:
They agree with your claim, in which case they owe you money.
They need more time to investigate your complaint.
In any such response, they should also tell you when they will next update you.
They do not believe you have grounds for complaint in the form of a final response letter.
You can escalate your complaint to the Financial Ombudsman Service if:
You receive no response from your financial adviser.
You are dissatisfied with the response you receive, whether that be the financial adviser dismissing your complaint or offering to repay you a lower sum than you believe they owe you.
If you believe your Final Salary Pension was sold incorrectly, contact us on 0800 061 4585 or email us at enquiries@returnmymoney.co.uk to explore your options and potentially make a compensation claim.
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Final Salary Pension FAQs
It’s challenging to provide an exact number of Final Salary Pensions that were believed to be mis-sold in the UK. The extent of mis-selling can vary over time and depend on different factors, including changes in regulations and the actions taken by regulatory authorities.
Mis-sold Final Salary Pensions are calculated by assessing the financial loss incurred due to the mis-selling. This involves comparing the projected benefits from the original pension scheme with those from the recommended alternative, considering fees, charges, and investment performance.
To start the process of claiming back money on your mis-sold Final Salary Pension, follow these steps:
- Gather documentation: Collect all relevant paperwork related to your pension, including transfer documents and advice received.
- Seek professional advice: Consult with a financial expert or claims management company specialising in mis-sold pensions to assess your case.
- File a complaint: Submit a formal complaint to the financial institution involved in the mis-selling or contact the relevant regulatory authority.
- Cooperate in the investigation: Provide any requested information or evidence to support your claim during the investigation.
- Await the outcome: The financial institution or regulatory authority will review your case and determine if compensation is appropriate.
Hiring a solicitor is not mandatory for a mis-sold Final Salary Pension claim, but it can be beneficial. Solicitors specialising in financial mis-selling can provide expertise, guidance, and legal representation, increasing your chances of a successful claim and ensuring that your rights are protected throughout the process.
The duration of the mis-sold Final Salary Pension claim process can vary widely depending on the complexity of the case, the responsiveness of the parties involved, and the workload of the regulatory authorities or financial institutions.
The average payout for a mis-sold Final Salary Pension compensation can vary significantly depending on the individual’s circumstances, the extent of mis-selling, the financial loss incurred, and other factors. It is challenging to provide an exact figure for the average payout as each case is unique.
The maximum compensation amount will depend on various factors, including regulatory guidelines and the specific circumstances of your case. It’s essential to check with the relevant regulatory authority or seek advice from a financial expert to understand the applicable limits for your claim.
Yes, there is usually a time limit, known as the statute of limitations, to make a mis-sold Final Salary Pension claim. The time limit can vary depending on the jurisdiction and the applicable laws. For example, the Financial Conduct Authority (FCA) set a time limit of 15 years from the date of the pension transfer or 3 years from the date of awareness of the potential mis-selling, whichever is later. It’s essential to be aware of these time limits as failing to make a claim within the specified period may result in the loss of your right to seek compensation.
Yes, you can claim on mis-sold Final Salary Pensions from the 70s, 80s, and 90s if you believe you were given unsuitable advice or were not adequately informed about the risks associated with transferring your pension..
Yes, if you believe you have been mis-sold a Final Salary Pension, you should consider making a formal complaint to the financial institution involved. If your complaint is not satisfactorily resolved, you may escalate the matter to the relevant ombudsman or regulatory authority.
Yes, your claim for a mis-sold Final Salary Pension could be unsuccessful. If your claim is deemed unsuccessful, you may not receive any compensation or redress. In such cases, you can seek further advice or explore other options, but the decision of the financial institution or regulatory authority is usually final.
In most cases, mis-sold Final Salary Pension compensation payouts are not subject to income tax. Compensation received as a result of financial mis-selling, including mis-sold pension claims, is usually considered a capital receipt and is not taxable. However, tax rules can vary depending on the individual’s circumstances and the nature of the compensation received.