Poor pension advice

coopsy0

About 6 months ago I obtained advice regarding a potential DB pension transfer.  At the time the advice was to leave it in the DB scheme.  Fair enough and I took said advice.  I am able to see my transfer value at all times and currently my transfer value is more than 250K less than it was when I took the advice.  Do I have any claim for poor advice in this matter.

MX5huggy

No because the basis of the advice was not “is this the optimum time to transfer” but due to your personal circumstances is staying in the DB with all it’s known benefits better than transferring to DC with all it’s unknowns. 

molerat

How was the advice not to transfer out poor ?

Mothman

You have not suffered any loss. You do not have a pot of money which has fallen, what you are seeing is a transfer value which has fallen because Gilt yields have risen, so the DB scheme are offering you a smaller amount of money in exchange for you discharging them of their responsiblity to pay you a guaranteed income.

Unless you have reduced life expectancy you would probably find it very difficult if not impossible to get a positive advisor recommendation to transfer anyway.

Dazed_and_C0nfused

coopsy0 said:

About 6 months ago I obtained advice regarding a potential DB pension transfer.  At the time the advice was to leave it in the DB scheme.  Fair enough and I took said advice.  I am able to see my transfer value at all times and currently my transfer value is more than 250K less than it was when I took the advice.  Do I have any claim for poor advice in this matter.

Can you expand on what poor advice you believe you received 🤔

moedeeb

The Advice was to leave the money in the DB scheme. The transfer value at the time was higher than today so if you look at it logically the case to leave it in the existing scheme would be even more compelling now but no less valid.  It is increasing difficult and expensive to get a positive recommendation to transfer from a DB to a DC pension anyway so I would say that you have no valid reason to claim poor advice. 

dunstonh

coopsy0 said:

About 6 months ago I obtained advice regarding a potential DB pension transfer.  At the time the advice was to leave it in the DB scheme.  Fair enough and I took said advice.  I am able to see my transfer value at all times and currently my transfer value is more than 250K less than it was when I took the advice.  Do I have any claim for poor advice in this matter.

How have you managed to link the reduction in CETV with poor advice?

The advice was to remain.  You accepted that and any future changes in the CETV have no impact on the advice you were given then.

If anything, your post indicates a lack of understanding, making the advice look more suitable.

Albermarle

The guaranteed income from your DB pension and the terms and conditions around taking it have not changed at all.
So your pension today is exactly the same promised income as it was 6 months ago

JoeCrystal

coopsy0 said:

About 6 months ago I obtained advice regarding a potential DB pension transfer.  At the time the advice was to leave it in the DB scheme.  Fair enough and I took said advice.  I am able to see my transfer value at all times and currently my transfer value is more than 250K less than it was when I took the advice.  Do I have any claim for poor advice in this matter.

You got to be joking. In that case, what was the original CETV then? Sorry, but the sheer audacity of your post calling a drop in CETV as poor advice. Do you not know what CETV is based on? Oh, if you DID manage to transfer your original transfer value, how would you feel if your pension fund dropped by 40%? I reckon you STILL call it a piece of poor advice.

But then, you would be fully aware of the risks and dangers of the transfer. Of course, they will write reports clearly warning about the risks. Still, too many customers read the terms and conditions or are too complicated to understand the report and believe they can understand it or could not care less and still complain about the advice.

So what were the reasons for negative advice then?

Kim1965

As others have said,  your post shows a lack of understanding.of db /dc pensions. The advice to stsy in your db scheme would appear to be spot on,  you have been advised well. 

coopsy0

As my plan was not to retire for 18months his advice was to leave it as in his words "the value would only increase the closer I got to 60".  I understand I have not suffered a loss of income from the DB scheme but my plan is to have a larger pension earlier in retirement when I need it most so a DB scheme is not what I require.  At the time the CETV was 960K.  I could have invested this money (understanding the risks) but now I can only invest 700K. Whilst I appreciate that there is no claim as I suffered no actual loss to the DB but it is still far from good advice.  The adviser even said that his advice would have been different if I intended to reire in the next  months.  At the time they were offering over 40x annual pensionable income and now offering 27x.