Construction firm Carillion has gone bust with an eye-watering pension deficit of £590 million. That’s a lot of money. What a disaster for their thousands of past employees who could have taken large transfers to their own personal pension and either didn’t know they could or chose not to.
Are there lessons to be learnt? You bet there are.
More than two years ago I was banging on about the pension disaster which was about to cause so much misery to past employees of British Steel, BHS and Austin Reed. And here we are again.
It is likely to be at least two years before the Carillion pension disaster comes to a conclusion. Two years of uncertainty, worry, concern and an outcome which for many will result in significantly less pension, poorer inflation proofing and absolutely no flexibility. And all in relation to a pension which the regulator would like you to keep because they say it is safe and secure!!!
Do you have final salary pension plans from previous employment? If so, provided you are more than a year away from your normal retirement date, you have a legal right to take a transfer value into a personal pension plan of your own choice. No longer will you need to rely on a past employer to look after your money.
Many financial advisers are not qualified to advise in this area. Others have chosen not to because of what they perceive to be high risk to their businesses.
So where do you go for help?
We are not authorised to provide the detailed pension transfer report you will need, but we can help you get together all the information required and make sure you understand all the risks and rewards before you get involved in expensive regulated advice.
This is the time for action. There are thousands of ex-Carillion employees for whom the option of a transfer out has probably now gone forever.
How much of a pension deficit is your past employer sitting on and will it be one of the things which eventually takes them down? Are you just going to sit on your hands and hope for the best? I hope not.
All you need to do is to send me a text 07770 575122 with “pension transfer” in the message and let’s have a no-fee conversation about whether this is really something which needs your attention.
If you would like to know more the blogs noted below will be useful reading.
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122