Bad advice put £60k of my pension at risk

Buzz’s final salary pension from his job of 22 years had a cash-equivalent value of around £200,000. He decided to move it to a scheme that was more flexible and where he was advised the benefits might be better for his family.

After receiving some initial advice, he decided to get in touch with a pension specialist. However, Buzz wasn’t aware it was a broker he was dealing with and that they were based in Scotland, not located near him. Buzz said, "I like things to be plain and safe – I’m not a gambler or a risk taker". He shared this low appetite for risk with the broker.

Buzz first noticed an issue when he received a letter which told him there was a problem with the corporate finance bond he held. Buzz didn’t know about this investment, in which around a third of his pension had been invested. Buzz later discovered the company he had transferred his pension over to had gone into liquidation. This left approximately £85,000 of his investment at risk and he feared he would no longer be able to retire when he had planned to. Around the same time, Buzz’s son sadly passed away, so this extra stress came at a very bad time.

The administrators dealing with the liquidation told Buzz about FSCS and he got in touch. Before this, Buzz had never heard of FSCS. He found out he would get £85,000 in compensation for the unsuitable advice he received to transfer his final salary pension.

He described it as a massive weight off his shoulders. Buzz said that his FSCS case handler was "superb". "Based on my experience my advice to others is, please think very carefully before moving any pension funds, things can still go seriously wrong even when you think you are in safe hands. FSCS did an amazing job sorting everything out. I am eternally grateful to the FSCS staff who took the time to do this for me."

Listen to Buzz talk about his experience in podcast #30

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