Michelin | Successful win of £59854.03

Amount won: £59854.03

Employer/Fund: Michelin

FA Firm: St James’s Place

Introduction:

Existing client of Beat the Banks. 

He was advised to transfer his Michelin company pension to a personal pension with St James’s Place by Alistair Flynn of St James’s Place and Andrew Cruse of Cruse Wealth Management Ltd, a Defined Benefit licensed partner at St James’s Place Wealth Management PLC.

The Background:

Our client had previously worked for Michelin and had a deferred defined benefit company pension which was valued at £247,043.90. This was his only pension with guarantees.

He was an entirely inexperienced investor with a very low attitude to risk and was only 54 at the time.

Our client contacted St James’s Place for professional advice regarding his Michelin pension. He was told that by transferring this pension he could retire at 55, he would have more flexibility when drawing his pension and it would create a pot of money to leave to his children. 

The Consequences:

• Our client was not advised of the benefits and guarantees he was giving up by transferring his Michelin pension.
• He would no longer have an inflation proof pension and it would now be subject to the volatility of the market.
• His pension could run out and he would have to pay advisor and fund fees until this time or until the day he died.

Our client paid the following fees:

• Adviser fees of £11,117 to transfer the pension.
• Early withdrawal penalty of £2806 to take his pension commencement lump sum at age 55.
• Ongoing adviser fees 0.5%
• Ongoing fund fees 1.5%

The Settlement:

After we obtained our clients files from his previous and existing pension providers we were able to determine that he had a claim. We then submitted the claim to St James’s Place along with considerable evidence.

St James’s Place upheld the complaint and calculated our clients losses at £58,654.67.

They have offered him £59854.03 which includes interest (less tax) and £500 in respect of any distress and inconvenience this matter has caused.

The payment will be made directly into our client’s bank account.