As a result of pension freedom being introduced by the UK government in 2015, there are now many different options for accessing and managing your money when you retire.
Occupational pension transfers have been chosen by some individuals in a bid to make the most of their pension pot and enjoy a financially secure retirement. This decision, however, has sadly not always proved as profitable as the so-called professionals selling these transfers have led consumers to believe.
The risks of an occupational pension transfer
Whilst it’s true that people who choose to transfer from an occupational pension to a defined contribution scheme have greater freedom over how they manage their pension, this decision also introduces a much higher element of risk.
They leave behind the protection and benefits of their occupational pension, such as life cover, death benefits and guaranteed annuity rates, and will miss out on the bonuses some providers award to long-term members of their schemes.
This security is traded for the promise of high returns with a defined pension contribution scheme like a Self Invested Personal Pension (SIPP) . Many soon discover, however, that the transfer has actually left them worse off.
Bad advice that could not be trusted
With pension freedom comes the challenge of choosing the best option for your individual circumstances. Pensions are incredible complex and the Financial Conduct Authority (FCA) recommends that professional advice should always be sought if you are considering making changes to your pension arrangements.
Unfortunately, many consumers who have diligently sought advice on such matters have been led astray be unscrupulous advisers who did not have their client’s best interests at heart.
Driven by high commissions, they have convinced individuals to transfer their pensions into schemes that do not match their needs or financial circumstances. For some, this has completely wiped out their pension funds causing a huge amount of heartache and stress.
If you have transferred your occupational pension as a result of untrustworthy advice the team at Beat the Banks are here to help. We know how distressing a situation like this can be and we will do everything in our power to find a resolution for you.
Call us on 0800 193 1234 for a free no-obligation chat with one of our expert advisers to find out what we can do for you.