FSAVC claim

kilburj02

I am a retired teacher, currently bombarded with offers from companies to pursue a compensation claim for a mis sold FSAVC. Is it possible to do this independently? If there is compensation due, I'd prefer to keep all of it!

Dazed_and_C0nfused

kilburj02 said:

I am a retired teacher, currently bombarded with offers from companies to pursue a compensation claim for a mis sold FSAVC. Is it possible to do this independently? If there is compensation due, I'd prefer to keep all of it!

What do you think was mis sold?

kilburj02

I was told my teachers pension wouldn't  cover my living expenses on retirement. Was not advised I could pay more into the pension or that I could buy missing years.

Ayr_Rage

Did you take professional financial advice and who advised you to go the AVC route rather than paying additional contributions directly to the scheme ?

dunstonh

. Is it possible to do this independently? 

Yes it is.   

 If there is compensation due, I'd prefer to keep all of it!

Dont go planning for compensation.  FSAVC complaints have the lowest upheld rate of any product type at the FOS.   Last time I looked it was just 1 in 10.     it is also one of the least complained about product types.

Claims companies try to complain about anything and everything.  It doesn't mean there is any wrongdoing though.

I was told my teachers pension wouldn't  cover my living expenses on retirement. Was not advised I could pay more into the pension or that I could buy missing years.

a) did you seek advice on those other things?
b) if you did seek advice, was it from an IFA or an agent of the insurer/provider you took the FSAVC with? (i.e. could they only offer their own option)
c) you couldn't buy more into the TPS. Buying added years was the way.  or buying an in-house AVC which is effectively the same as FSAVC.
d) were you planning earlier retirement than scheme age?   Back when FSAVCs were available (pre 2006), many teachers were unable to retire earlier than scheme age because they wouldn't allow earlier access to the scheme pension.   An in-house AVC or added years was tied to the scheme age.    An FSAVC was not.     A common reason for doing the FSAVC was to allow it to be used to fund the gap for earlier retirement.      

LHW99

Also, I believe that the in-house AVC didn't become widely known (?available) until a few years after FSAVCs were introduced.

Marcon

kilburj02 said:

I was told my teachers pension wouldn't  cover my living expenses on retirement. Was not advised I could pay more into the pension or that I could buy missing years.

Told by whom - and exactly what sort of crystal ball did they have to predict that you wouldn't be able to live within your means?

Why do you think your FSAVC has given you a worse outcome than an in-scheme option? 

You would have had a scheme booklet, which would have given you details of the options available to you at the time for topping up your pension by paying more into it. Info would also have been on the TPS website, depending on how long ago you retired and whether the website was in existence at the time.

kilburj02

It was a Colonial Mutual advisor who made appointments through school. I was only in my 30s at the time and pensions seemed a long time away. I didn't  look at options because I believed what the advisor said. Foolish, I know but was wrongly reassured by the number of older colleagues who were having appointments and signing up. 

dunstonh

It was a Colonial Mutual advisor who made appointments through school.

Insurance agents could only retail their own products.   If you use a rep of the company then why are you surprised that they put in place their own product?

 I was only in my 30s at the time and pensions seemed a long time away. I didn't  look at options because I believed what the advisor said. Foolish, I know but was wrongly reassured by the number of older colleagues who were having appointments and signing up. 

Why is it foolish?  That rep got you to pay more towards your retirement.   It may not have been the most optimal way but is was better than the do nothing alternative, which would have likely been the case had they not sold you the FSAVC.

kilburj02

I meant I was foolish not to explore other options for my extra contributions before signing up. Thank you for your previous comment, however. It is helpful to know the opinion of a financial advisor

Dazed_and_C0nfused

kilburj02 said:

I meant I was foolish not to explore other options for my extra contributions before signing up. Thank you for your previous comment, however. It is helpful to know the opinion of a independent financial advisor

Corrected that for you.  

The Colonial Mutual rep would have been a financial advisor.