If you’re nearing the age of retirement, you might be thinking about transferring to a new pension product. Before making any rash decisions, you should know that it is not uncommon for many companies to cause trouble for pension holders. Many people have been on defined benefit pension and have fallen into schemes of mis-sold final salary pension. Here are a few essential things you have to know both to prevent and avoid this.
How Can You Tell If You’ve Been Mis-Sold Final Salary Pension?
Final salary pensions are essential to having a stress-free retirement. Defined benefit pensions can hold a very significant amount of money, which is why you might fall into the threat of being mis-sold when asked to transfer.
Not every transfer is due to terrible schemes. Some found that transferring their pension was much more beneficial than not doing it. But some people might be dealt bad cards due to the negligence of an advisor or misleading claims. There is no hard evidence of where the money goes, but it has been widely suspected that it all goes to city projects or local council pensions.
How Do I Make a Mis-Sold Final Salary Pension Claim?
To file for a claim, you need to ask yourself specific questions to determine if you are on the right side. For one, your new pension should match your “critical yield,” which is your return of investment that must be completed to receive retirement benefits. You can use a critical yield calculator to find out what that is. If you seem to be on the losing end, there is definitely something wrong with your pension transfer.
Another factor that fits the claim is mistreatment by your advisor. If they didn’t explain the pros and cons of transferring your pension to you, then you might have been coerced into it. If you were told that there was no other choice when that wasn’t really the reality, it is misconduct on their part.
How Much Can I Be Owed?
Every case is different, so there isn’t a standard or exact amount you can promise when you make such claims. Every investigation involves other companies, people, and situations that may determine how much you’re entitled to.
Generally, if your compensation is in the higher end of the bracket, the greater your right to a higher amount. Some schemes will target those with generally higher income so that things may go unnoticed or people who would have no motivation to make a claim.
Conclusion
Finding out that you can make a claim can get you back thousands of dollars, depending on your case. Before claims are even made, they have to go through a screening process to see if you qualify to make such claims. If you have a hunch that you are entitled to one, seek professional consultation from people who can look at your case and give you a definitive answer.
Are you in the middle of a dispute for mis-sold goods? Consumer Reclaim specialises in helping you check the claims and get what is rightfully yours. We have a no-win, no-fee policy to ensure that you get reimbursement for every bit taken from you. Call us now!