Mr James’ British Steel Pension Case Study
THE SITUATION
Mr James worked as a steelworker for many years. In August 2015, he was advised to transfer his pension into a Personal Pension arrangement, a move touted to offer better financial returns. Trusting this guidance, he moved £130,036.23 from the British Steel Pension Scheme (BSPS) to a new pension plan, unaware of the impending financial detriment this advice would lead to.
OUR APPROACH
Upon Mr. James reaching out for assistance, our team at Money and Me conducted a meticulous evaluation of his pension transfer. We analysed the terms of his BSPS and the subsequent Personal Pension to establish a ‘hypothetical value’ had he not transferred his pension. This comprehensive financial analysis, coupled with our legal expertise, was pivotal in ascertaining the actual financial loss incurred due to the unsuitable advice he had received.
THE OUTCOME
Our findings revealed a stark contrast between the Personal Pension’s value and what would have been accrued in the BSPS—amounting to a significant loss of £123,622.90 for Mr James.
Armed with this evidence, we advocated on his behalf with the Financial Services Compensation Scheme (FSCS), which acknowledged the misadvice and the financial impact on Mr James.
Consequently, on 13th February 2019, the FSCS awarded him compensation of £50,000, the maximum amount permissible under their regulations. While the sum does not fully restore Mr James’s financial stability, this compensation serves as a semblance of justice and a cautionary tale for steelworkers to seek reputable advice regarding their hard-earned pensions.
If you believe you have been wrongly advised to transfer your Miner Pension, don’t hesitate to contact Money and Me Solicitors for help.
