If you think something has gone wrong with your pension and you feel you have a complaint, it's really important that you contact the scheme provider first. In a Freedom of Information (FOI) request submitted by Professional Adviser, the financial watchdog revealed it received 64 complaints from clients of advisers who were dissatisfied with the pension transfer... For assistance please contact our customer service team. That can’t usually be done with a final salary scheme. You may have been mis-sold if any of the following applies: You were advised to transfer from an occupational defined benefit (DB) final salary scheme to a personal scheme. How to complain about a pension. The ban applies to all apart from specific groups, such as those in financial hardship (such as losing your home), people with serious health conditions or those who may have a shortened life expectancy. The FCA says that given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains ‘too high’. Some commentators have estimated that the bill for compensating people who were wrongly advised to transfer or opt out of occupational schemes could be as high as pounds 1bn. In the late 1980’s and early 90’s many workers were wrongly advised to transfer from a guaranteed final salary work pension into a private personal pension with an insurance company. While this means consumers effectively have access to ‘free advice’, if a transfer goes ahead it could end up costing members tens of thousands of pounds, only to be put in a much less generous DC scheme. Find out more about final salary transfers and get in touch today for expert advice. With other companies, pension transfer costs are … Anyway, the FCA’s data found that nearly 70% of clients were advised to transfer – a level the FCA has publicly stated it finds to be too high. !function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async"); The Pensions Regulator (TPR) and the FCA believe that it will be in the best interests of members to keep their DB pension. We use cookies to allow us and selected partners to improve your experience and our advertising. Tens of thousands of workers may have been wrongly advised to switch out of gold-plated company pension schemes in what could be a £20 bn mis-selling scandal. On 3 August 2016, the FCA announced it would be launching a consultation on redress for consumers who were given unsuitable advice to transfer out of defined benefit pension schemes. I was advised to transfer out of my pension scheme into a high risk fund. Sign up to receive email alerts about our events. Once the money is in the LIRA, Cornelia wants to use it for cash flow. If your advisor recommended transferring to a private pension scheme, even though it paid out less than your company plan, this could constitute bad advice leading to … However, those who have been encouraged to transfer their money out of a final salary scheme may have been wrongly advised. Your State Pension might be lower if you’ve ever been contracted out from the Additional State Pension. The FCA rules require that advice on pension transfers, conversions or opt outs (from a scheme with safeguarded benefits or potential safeguarded benefits). The consultation ended in June 2017 and the FCA’s finalised guidance - FG17/9 - was released in October 2017. The financial services authority (FSA) has recently (2008/09) been conducting thematic research on pension transfers, in particular individuals who have been advised to move from a cheap stakeholder pension or personal pension to a expensive SIPP (self invested personal pension). Sometimes, pension transfer charges are a percentage fee of the amount you transfer across. The advice rule affects people who want to transfer final salary pensions, or defined contribution pensions with guarantees attached, which are worth more than £30,000. You were not told what valuable benefits you would be giving up if you transferred from a DB final salary scheme to a personal pension. Professional Adviser is once more issuing the call for adviser businesses from across the UK to showcase their knowledge, skills and commitment to client care by entering our 2021 Awards. 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