Persuaded to transfer out of USS 20 years ago

Buzzcock

I thought I should give you an update. I have managed to find the paperwork and correspondence from the USS and the financial advisor.
Details:
Deferred pension at leaving USS: £1,652
Deferred lump sum: £4,957
NRD: 65

The pension would have increased annually by RPI.

Transfer value from USS to personal pension: £11,700

I was advised that the USS would be eroded over time and that a personal pension would give significantly better returns.

Do you think the above would help to prove that I was miss sold?

JoeCrystal

Hmm, your pension would be worth £2,812 per year by now (if indexed by RPI since 1999), how big is your personal pension atm? To have £2,812 index-linked annuity at 65 would require £92,897 pension pot.

It is interesting to note that you were advised that the USS pension would be eroded over time? Is it something to do with pre-1997 service, not index-linked or something?

AnotherJoe

In 20 years at 8% that would be £54k roughly (EDIT; sort of figure I'd expect you to get) But you got much less, probably high charges? Or poor fund choice? Who was responsible for managing teh fund choices?

At say 4% annuity rate that would pay the same sort of amount but no lump sum

However back in the day annuity rates were more like 10-15%so even at 10% that would have been double.
So maybe without the benefit of hindsight it was a reasonable decision had it not been a lousy performer.


Oops missed the RPI update on the USS so that makes it even worse. Again, whose responsibilty is managing teh fund?

Buzzcock

The current personal pension is ~£29k.

AnotherJoe

Buzzcock wrote: »

The current personal pension is ~£29k.

I amended my post to say what I meant

Buzzcock

The IFA at the time said increases with RPI is not particularly attractive as the stock market could give much better returns.

The investment is in the "mixed fund" of a policy suggested by the IFA. It hasn't been moved since then.

zagfles

Worth pursuing - I know people who've got compensation in similar circumstances.

Buzzcock

I will look into it. Is the first approach to the IFA?

Brynsam

Buzzcock wrote: »

I will look into it. Is the first approach to the IFA?

Yes - make sure you head your letter 'complaint'.

atush

If the person no longer works there, the company must deal with you.