MISSOLD PENSION COMPENSATION

In the late 1980's millions of people were persuaded to contract-out of the State Earnings Related Pension Scheme (SERPS) as the way forward to provide a greater income for retirement however this has resulted in millions of potential missold pension compensation claims.

Were you aware that by contracting-out you were giving up valuable guarantees, including:

• A guaranteed pension based on your income and independent of stock market performance
• Inflation-proofed benefits
• Spouses benefits in the event of your death

Did you know where a company scheme is not available for you to join; you are almost always better off remaining in SERPS?

PricewaterhouseCoopers, in November 2002, gave as an example: 'Someone reaching 65 who contracted-out for five years in the late Eighties or early Nineties. Having followed the stock market up to the top of the hill and back down again, their pension is about £420 a year. But their dull and boring SERPS pension - that they voluntarily forfeited - would have been worth £720 a year.'
(Source: Guardian Unlimited November 10, 2002)

Six million people are to get a letter from their pension provider advising them to review their move to contract out of SERPS.
(Source: BBC News 5 October, 2004)

WHICH? Magazine has published articles on potential missold pension compensation claims with the headline "Contracting out of SERPS : Was it worth it?" and in it suggested that "this problem could be as significant as the endowment mis-selling crisis." and "The wrong decision means some people may be heading for a pension worth 60% less than they would have received if they hadn't opted out of the state scheme."
(Source: Teresa Fritz - Principle Policy Researcher - WHICH?)

It is estimated that advisers, who are the subject of missold pension compensation claims, would have made about £1,000 per client in commission if they had advised someone to contract out in 1988.
(Source: Money .Telegraph 4 July 2005)

An independent review of past decisions to contract-out of SERPS in favour of an Appropriate Personal Pension Policy has identified an average shortfall of £3,900 for each pension fund.
(Source: Oxford Actuaries and Consultants plc (OAC) August 2005)

Britain's chief City watchdog yesterday said millions of people who opted out of the second state pension scheme had lost money and warned financial companies that they could face another mis-selling investigation as a result.
(Source: Money .Telegraph 23 August 2005)

"Campaigners were claiming a notable victory last week, with news that Prudential had agreed to pay compensation to one such saver after an 18-month battle. Pensioner Michael Ford of Stroud, Gloucestershire, took his case to the Financial Ombudsman Service after discovering that his contracted-out private scheme produced an income that was worth £200 a year less than he would have received from the state under SERPS"
(Source: Paul Lewis BBC Radio 4's Money Box 12 November 2005)

If you would like free advice either complete and send the contact form or call the helpline and an expert adviser will discuss your potential no win no fee compensation claim at no cost to you. If after discussing your claim with us you wish to take the matter no further then you are under no obligation to do so and you will not be charged for our initial advice.