Persuaded to transfer out of USS 20 years ago

Buzzcock

Hello,
I am now taking more of an active interest in my pension and i keep regretting the decision i made 20 years ago. I doubt there is anything i can do about it now but it would be good to get your views on whether i made a bad decision or if there is anything i can do now. Maybe it is just one of these life decisions i need to live with. I left an academic job 20 years ago after being in the USS for 7 years. Not long after i started my new job i was contacted by email out of the blue by a financial advisor “congratulating me on my new job and that i should consider transferring the pension”. At first i thought the person was representing my new company but it was essentially a cold caller. I subsequently met him in a local hotel and he persuaded me to transfer to a personal pension saying that i would get a better return. The transfer value was £11k and it is now worth £28k. I frequently regret this decision but i have never done anything about it as i don’t have the original emails or proof that i was incorrectly advised. I would appreciate your views on whether it really was a bad decision. As well as this pension, i have been in a DB for the last 20 years with the NRA 15 years away.

Thanks in advance!

System

It was probably a terrible decision, but it was your decision. Forget this nonsense about being incorrectly advised and take responsibility for your decision.

zagfles

Economic wrote: »

It was probably a terrible decision, but it was your decision. Forget this nonsense about being incorrectly advised and take responsibility for your decision.

Why? Loads of people have had compensation for this sort of misselling. I know a few. Even where they've sought out an advisor and asked for a transfer, rather than been cold called and persuaded.

Silvertabby

Buzzcock wrote: »

Hello,
I am now taking more of an active interest in my pension and i keep regretting the decision i made 20 years ago. I doubt there is anything i can do about it now but it would be good to get your views on whether i made a bad decision or if there is anything i can do now. Maybe it is just one of these life decisions i need to live with. I left an academic job 20 years ago after being in the USS for 7 years. Not long after i started my new job i was contacted by email out of the blue by a financial advisor “congratulating me on my new job and that i should consider transferring the pension”. At first i thought the person was representing my new company but it was essentially a cold caller. I subsequently met him in a local hotel and he persuaded me to transfer to a personal pension saying that i would get a better return. The transfer value was £11k and it is now worth £28k. I frequently regret this decision but i have never done anything about it as i don’t have the original emails or proof that i was incorrectly advised. I would appreciate your views on whether it really was a bad decision. As well as this pension, i have been in a DB for the last 20 years with the NRA 15 years away.

Thanks in advance!

20 years ago is a bit late for the 1980s pensions mis-selling scandal, so I fear that you will have no come back with this one. At least it appears (I hope!) that you still have some money, as many scammers would have just trousered the lot.

That said, were you part time with the USS - as a transfer value of just £11K is very low for 7 years of full time pensionable service, even on a low wage. Did USS inform you of the transfer value directly - or did they go through your 'adviser'? Do you know how much USS pension you gave up in return for this £11K?

Dox

Either do something about it or stop regretting - otherwise you'll drive yourself nuts.

You might be able to establish from whom the 'advice' came by checking with the personal pension provider, if you have no paperwork or can't remember. The real question is whether it was 'advice' - or simply an execution only transfer. If this was taking place about 20 years ago, the mis-selling (of personal pensions) review was well underway, so it is quite probable that the salesman you met would have been careful what was said, never mind put in writing.

If at the time of the transfer you expected to have several more job changes, it might have been quite reasonable to transfer...and of course now you have a DC pension to sit alongside your current DB scheme, so will have much more flexibility in terms of accessing your benefits.

Bad decision? Not necessarily.

Buzzcock

I was full time and it was my first job so my earnings were low. I still have the correspondence from the USS and from memory the transfer value was given by USS. I might try and confirm this.

The advisor worked for financial advisors who still in a way monitor my personal pension although the particular advisor is long gone. Thinking back it was a bit odd how I was contacted.
I try not to dwell too much on this naive decision. My DB is reasonable and I have just started an AVC.
I don't recall the actual USS forecast.

GDB2222

Buzzcock wrote: »

I was full time and it was my first job so my earnings were low. I still have the correspondence from the USS and from memory the transfer value was given by USS. I might try and confirm this.

The advisor worked for financial advisors who still in a way monitor my personal pension although the particular advisor is long gone. Thinking back it was a bit odd how I was contacted.
I try not to dwell too much on this naive decision. My DB is reasonable and I have just started an AVC.
I don't recall the actual USS forecast.

It's quite likely that USS could dredge up the paperwork for you, if you wanted to pursue this. In fact, it's probably free. Just ask USS for your data, in accordance with DPA/GDPR.

Buzzcock

Do you think I have a case after all these years? If so, how do I proceed?

GDB2222

Buzzcock wrote: »

Do you think I have a case after all these years? If so, how do I proceed?

You would complain to the adviser/his company. If they think you've left it too long to complain, they should say so. You may also get advice on this point from the FOS.

bostonerimus

Your money has grown at about 5% per year....that's not great, but it isn't terrible either. 11k is quite a small amount and things could have been far worse so stop worrying about it, but learn from it and make sure you understand your finances and pensions and only take well informed decisions in the future.

LHW99

This DC fund would perhaps allow you to retire a year or so earlier than the NRA of your new DB pension, so that you don't have to take that earlier and have it actuarily reduced.