Whitefoord has warned that the pension market could be set for a mass switch out of final-salary pension schemes, with advisers potentially facing misselling claims if they do not recommend clients to do this. They believe that there is concern among higher earners that they will lose more of their pension than what they would from the cost of a transfer should their company have financial troubles. A 5% transfer fee would be preferable to losing most of their pension should the employer go bust.
Whitefoord consider that the risks for independent financial advisers are enormous if they do not point this out for any client with a pension worth more than £25,000.
Our view
Financial solvency of your employer and therefore, your pension is a worry. If in doubt you need to take advice and understand your options.
Contact us to get your scheme reviewed.