What’s wrong, cat got your tongue?

If you’re as old as me, you may recall being told, back in the day, that “8 out of 10 cats prefer Whiskas Super Meat” – well, some 30 years or so on, 8 out of 10 victims of the British Steel pension transfer scandal, prefer not to make a claim for compensation for the bad advice they more than likely received to transfer out of their hard earned British Steel pension fund………….by no means a purrfect situation!

Despite the UK’s financial big guns, the FCA, the FSCS and the FOS wading in with their huge marketing budgets, seminars and nationwide media/social media coverage of the scandal, in an effort to inform the victims of their likely plight, less than 20% of British Steel workers, who acted on what, more often than not, has been proven to be unsuitable advice, have claimed compensation.

Why?

In our experience, the reason is often a toxic mix of issues; embarrassment at being mis-lead, a sense of loyalty to the person who advised them, a feeling of being at fault and undeserving. However, we also believe that many victims are simply ignorant of the damage that might have been done to them, their families and their future retirement plans. They do not understand that, even if the transfer of their pension allowed them to access large amounts of money and they are relatively okay with their new pension arrangement, they are still entitled to damages for any unseen harm that has been caused to them.

If you have received bad advice, compensation (or damages) is not a hand-out, it’s your entitlement.

Possibly the saddest part of the scandal is that the people affected may never know the impact any bad advice will have on their family’s standard of living, into and beyond retirement.

WARNING – The clock is ticking!

Did you know that there is a DEADLINE to claim compensation, meaning that if you do not make a claim within certain timeframes, you could be prevented from claiming? You might only have a matter of weeks or months before you lose the right to claim…

Can you really afford NOT to claim? Imagine if the people below had left it too late!

Client 1:

In August 2015, with promises of better financial returns, Mr James from Swansea, acted on, what has now been proven to be unsuitable advice, and transferred his British Steel Pension Scheme (BSPS) into a Personal Pension arrangement. The amount transferred was £130,036.23.

Less than 4 years on, and at the point of his compensation award, it was established that had Mr James remained in the BSPS, the equivalent ‘hypothetical value’ of that pension would have been £293,505.90. Taking this figure, the benefits he had taken, and the overall value of his Personal Pension into account, it was confirmed that Mr James had suffered an actual loss of £123,622.90 

On 13th February 2019, the Financial Services Compensation Scheme (FSCS) awarded Mr James £50,000 in compensation for the losses he’d suffered. At the time, this was the maximum payment he was entitled to receive under the FSCS rules. This payment was in addition to his new pension arrangement, which remained unchanged.

Client 2:

In January 2017, Mr Clayton from Port Talbot, acted on, what has now been proven to be unsuitable advice, and transferred his British Steel Pension Scheme (BSPS) into a Personal Pension arrangement. The amount transferred was £167,783.53. Within 22 months his (new) Pension had reduced to a value of just £59,455.50.

Just over 2 years on, and at the point of his compensation award, it was established that had Mr Clayton remained in the BSPS, the equivalent ‘hypothetical value’ of that pension would have been £344,498.26. Taking this figure, and the overall (revised) value of his Personal Pension into account, it was confirmed that Mr Clayton had suffered an actual loss of £296,152.80. 

On 28th March 2019, the Financial Services Compensation Scheme (FSCS) awarded Mr Clayton £50,000 in compensation for the losses he’d suffered. At the time, this was the maximum payment he was entitled to receive under the FSCS rules. This payment was in addition to his new pension arrangement, which remained unchanged.

Please note, the FSCS has increased its maximum payment to £85,000.

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