Your pension consists of the financial benefits that you have accrued during your time in a workplace, usually made up of contributions from your own salary and from your employer. A pension transfer can occur if you decide to leave your pension scheme in favour of another, for example a self-invested personal pension (SIPP) or a stakeholder pension (SHP). However, this is not always the best course of action for a pension holder to take, with unsuitable advice preceding thousands of transfers in the UK resulting in swathes of pension transfer claims as pension holders attempt to seek financial remuneration.
You may decide that a pension transfer is best for you if you are moving to a new pension scheme, which will combine your old and your new pension schemes into one manageable pot. Or, you may wish to transfer your pension if you are moving overseas and would like to join a scheme based in that country. However, a pension transfer is not always necessary, or indeed beneficial for a pension holder. It can in fact result in significant financial losses, which can only be recouped by making a claim if the pension transfer was mis-sold.
This article will explore the process of making a pension transfer claim in more depth:
When Can You Make a Pension Transfer Claim?
If you were actively advised to transfer your pension from a company scheme to a personal pension scheme, and the new scheme did not perform as suggested, you may be entitled to compensation. Likewise, if there were no accurate projection comparisons about the short and long-term performances of both your old and new pension scheme, you are entitled to make a pension transfer claim.
What Does a Pension Transfer Claim Entail?
You can make a pension transfer claim on your own, but it is advisable to use a dedicated financial claims company like Money & Me, that is capable of assessing your financial circumstances and analysing the performance of investments in a variety of pension schemes.
Pension holders are often advised to transfer to personal pension schemes under the pretext of having more control over their investments, yet SIPP and SASS systems alike are often set up to hold high-risk, underperforming investments of shareholders, which yield lower returns than if the pension holder had remained with the initial company pension. This sort of malpractice is a form of gross misconduct which has resulted in hundreds of successful pension transfer claims against financial advisors that have put the vested interests of their stockholders before pension holders.
As financial claims experts, we will review investments to ensure they match a pension holder’s attitudes to risk, and ascertain whether the advice provided was genuinely in the best interest of the pension holder.
How Much Compensation Are You Entitled To?
Currently, the maximum amount of compensation allowed by the Financial Services Compensation Scheme (FSCS) for pension transfer claims is capped at £50,000.
Is There a Time Limit on Pension Transfer Claims?
Claims have historically been declined on the grounds of time barring, even if the cause for making a pension transfer claim only becomes apparent years after the transfer has been completed. Exceptional circumstances will be considered by the FOS, but so-called ‘stale’ claims are at a higher risk of falling through than those which are filed promptly.
Pensions Transfer Claims from Money & Me
Money & Me is an independent claims company dedicated to helping those who have been mis-sold financial products, including pension transfers.
We operate on a no win – no fee basis*, so if you feel that you have been mis-sold a pension transfer, you can count on us to handle your pension transfer claim with professionalism and diligence. Contact us if you have any questions, or start your claim online directly.
*Please see our T&Cs for our full fee structure