You may have heard the phrase defined benefit pension switch mis selling in the press, and it is becoming more widely known.
Defined benefit pensions are designed to pay you an income for life when you retire, which can increase each year for the rest of your life. You may have a defined benefit pension if you worked in the public sector or for a large private sector organisation. Although you can make contributions to the scheme if you want to, it is the employer’s responsibility to make sure that there is enough money within in the scheme at your retirement date to pay you the pension you deserve.
Defined benefit pension schemes usually continue to pay out to your dependants, your spouse or civil partner in the event of your death.
If you are not already drawing your pension, you may choose to switch your defined benefit pension scheme to a different provider. You can access your defined benefit pension from the age of 55 and switching may seem like an attractive proposition. However, if you do transfer your pension, you will be giving up valuable benefits, and you may even find yourself worse off.
You will be required to take professional financial advice if your pension is worth more than £30,000 in any event, and it is always advisable to talk to a regulated financial adviser, before initiating a transfer.
Many people have been wrongly advised to transfer their funds out of a defined benefit pension scheme into a private scheme. These alternative schemes can be very high risk, and some people have lost almost all of their retirement funds as a result.
You may have been wrongly advised to switch your defined benefit pension if:
What should you do now?
If you think you may have been a victim of defined benefit pension switch mis selling, contact our helpful team of experts in confidence for advice.
At Financial Resolver, we specialise in pursuing claims for mis-sold defined benefit pension switches. We operate on a no-win, no-fee basis and we have no up-front or cancellation charges. Only if your claim is successful will we charge you a fee of 20%, plus VAT.
We will only take on claims that we consider to be strong and credible. If we don’t believe that your claim will be unsuccessful, we will say so.
If you have suffered a financial loss after receiving poor advice to purchase or transfer financial products from your broker, bank or Financial Advisor and wish to discuss making a claim then please call or email us today.
Mac Fin Consulting Limited t/a Financial Resolver is regulated by the Claims Management Regulator in respect of regulated claims management activities.
Its authorisation number is CRM31917. The registration is recorded on the website www.claimsregulation.gov.uk.
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