Pension transfer advice survey reveals a third of Steelworkers spent less than 2 hours taking advice
A recent poll of 176 Teesside steelworkers revealed that a third of them spent less than two hours with their financial adviser before deciding to transfer out of their defined benefit (final salary) pension scheme.
All but one of the workers surveyed decided to transfer out of their guaranteed pension scheme.
Leading financial industry publication, FT Adviser reported the results of the online survey carried out by Rich Caddy, shift operations manager at British Steel in Teesside, and a former member of the British Steel Pension Scheme.
Commenting on why he conducted the poll, Rich said:
“I started the survey following posts from members that they seemed unaware of the options that should have been made available during the transfer process.
“We started a thread [in our Facebook group] discussing ongoing service and fees, where one member commented that he was not given a choice during the transfer.
“I was quite alarmed by this as most of the highlighted issues have been with regard to ‘contingent fees’, it seems that ongoing charges are being overlooked.”
The poll also showed that 67 per cent of steelworkers who transferred out the pension were under the age of 55, including some in their 30’s.
In a previous Blog we highlighted that when transferring their secure final salary pensions to more risky private schemes, a large proportion of steelworkers were represented by Active Wealth. The firm entered liquidation after it was told to cease any pension transfer activity by the government backed financial watchdog, the Financial Conduct Authority (FCA) months earlier.
The Financial Services Compensation Scheme (FSCS) is currently dealing with a number of claims against Active Wealth.
TLW Solicitors’ view
Peter McKenna, TLW Solicitors Partner and experienced financial mis-selling solicitor said:
“It’s worrying that so many people in defined salary pension schemes don’t really understand them and don’t appreciate their value compared to transferring into other more risky or unsuitable investments. Good financial advice should leave you feeling well-informed and confident that you have made the right choice for your financial future. TLW Solicitors has a team of financial mis-selling specialists who work with these individuals to help them claim compensation for the money they lost out on as a result of leaving their defined benefit pension.”
TLW Solicitors can help you
If you, a relative or friend may have been advised to transfer out of a Defined Benefits Pension Scheme, then please get in touch with one of the specialist financial mis-selling lawyers here at TLW Solicitors for a free, no obligation discussion.
You can either ring us on 0800 169 5925, email email@example.com or complete the call-back form below.
For added TLC, think TLW Solicitors.