How good is my Teachers Pension?

All teachers that work in public schools have the opportunity to be a member of the teachers pension and everyone should join.

Here is the main reason why you should join and some does and don’ts once you are a member even if you leave in the post in the future and pursue a different career.

Teacher pensions are part of what they call a Final Salary scheme and it is almost impossible to beat this whatever anyone tells you and for this reason alone you should join it as soon as possible and never leave it of transfer your benefits away from it now or in the future even if you change jobs.

A Final Salary pension is exactly that in that it is based on your Final Salary when you retire divided by how many years you have been a member. So with this type of pension there is no risk to your pension fluctuating with the stock market.

For people who leave the profession this still applies and the pension will be based on what your grade salary is when you come to retirement and not what it is when you left as many people think.

Other factors that you should take into account are paying AVCs or Additional Voluntary Contributions to give them their full name for a couple of reasons.

Firstly they will enhance the pension you get in retirement and secondly they are cheaper than the alternative which is FSAVCs or Free Standing Additional Voluntary Contributions as these have higher charges attached to them which can and does have an impact on the growth.

So if brief

Join the scheme pay AVCs to enhance your pension if you possibly can and never transfer it or be advised by anyone to do anything different.

For Teachers that have been encouraged to transfer their pension in the past you can almost guarantee that this advice was wrong and you will be entitled to compensation as a result which will put you back into a position you would have been had the advice never taken place.

Likewise if you have been advised to take our FSAVCs instead of AVCs then this will almost be guaranteed to be inappropriate also and compensation will be awarded although it is slightly different to that of the main pension in that it is the difference in charges that is awarded instead of how the fund has performed. This can still lead to substantial compensation and you should get it checked if you have been advised to do this in the past.

There is no limit of the amount of compensation that can be awarded unless your case goes to the Financial Ombudsman who has a limit of £150,000 which is a substantial sum for anyone to be added to their pension fund or paid out as a lump sum.

If you are a teacher of have been one in the past and any of this applies to you then use the services of a claims management company to look into this in more detail on your behalf as most of them work on a no win no fee basis.

Finally if you would like further information on mis sold teachers pension then visit where you will get a lot of further information and submit your concerns to them if you decide to get your pension checked.

Getting To Know The Disadvantages Of Hiring Mortgage Brokers

There are so many reasons why a person should hire mortgage brokers. They can make things easier for you. They can keep you away from all the hassles of having to process all the paper works and so much more. However, there are reasons why you should not. Now, if you know the “pros” of hiring one and you still haven’t decided whether you should get one, here are the “cons” that can help you balance things off.

Lack of Experience

Not all mortgage brokers that you will find out there are experienced. They might appear professional and well-trained to you at first, but once they start working on your concerns, you will see how much of a beginner they are. Indeed, you can never be too sure about their capabilities until you get to try their services. Some may just use you to gain experience. If you are not meticulous enough, you will definitely lose some money.

The Extra Fees

What could be worse than having to pay extra fees when you are trying to look for something that can help you save money? The reason why you might be hiring mortgage brokers is to have someone who can assist you in finding the best mortgage deals. Still, just like what you always hear, nothing is for free anymore. You will certainly need to pay for the service of the mortgage broker that you will be hiring. If you are not smart enough to transact with them, you could even be paying amounts that are bigger than what you are supposed to be spending.

Conflict of Interest

If you are a first-timer, it will be very hard for you to find the best mortgage brokers whom you can work with. You would not know the best names in the industry and you will find it difficult to hire someone who actually has a personality that matches yours. If your attitude and your perspectives do not match, it will not be easy for you to settle to an agreement. What he thinks is right maybe beyond your preferences. Things can be even harder for both of you if he isn’t experienced enough.

Limited Connections

Again, if you do not know who the best people in the industry are and you are aiming to hire someone who can offer his services to you at an affordable price, expect to see the newbies. With that on hand, it is not very hard to conclude that with the limited experience that they have, they also have limited connections and networks.

Whenever you are hiring someone to work for you, always make sure that you make the most out of your money. Even if you won’t find the best in the industry, what matters is that you get to find mortgage brokers who will do their best to serve their purpose.

missold pension: Understanding Why Many Workers Are Making the Switch

The recent proliferation of missold pension has made many individuals wonder. Why are so many workers making the switch? What is it with personal pension schemes that have made them attractive to many workers. A recent news item revealed that as much 55 percent of workers have already made the switch from company sponsored pension to personal pension programs. This is a very big figure, so big that it can equal to approximately 20 billion in pension being missold. If you think about it, the figure can be disturbing.

Companies Are Cutting Pension Costs

At the heart of the missold pension issue are the companies who have lots of workers. Company sponsored programs like final salary schemes are excellent for employees but companies know that it will drain their financial reserves the moment many of the workers start collecting their pension. Most final salary pension schemes adjust the figure in relation to inflation and this makes the program all the more costly for the company. One way to cut cost fast, is to encourage workers to migrate to a personal pension program. In this way, the company gets to save a lot since they will not be the paying the workers in the future. It will now be the pension provider who will pay the pension.

Workers Do Not Fully Understand the Financial Advice

A critical component in pension migration is the correct financial advice. The financial advice must get to the heart of the issue and that is the suitability of the program to a specific individual. Not all workers may find personal pension scheme suitable for their present situation. Many can be better off with company sponsored programs. However, as what has happened many times over, the financial advice is usually built on assumptions printed on a computerized print out. The result usually comes in the following sequence: worst-case scenario is good for defined benefit or final salary schemes, but when it comes to best-case and mid-case scenarios the personal pension program wins.

Pension Companies Are Offering Deals

To make things more favourable to independent pension providers, many pension companies are offering workers who decide to make a switch. If you are wondering why the sudden increase in missold pension is happening, this can be the culprit. Some pension companies are reportedly offering 5,000 in cash to potential individuals who decide to make the transfer. Potential individuals are those who are contributing a substantial amount into their pension fund monthly. Even with the deal, pension companies still get to make a big profit from those who switch.

Workers Should Have Access to Free Independent Financial Advice

In order to minimize, if not prevent missold pension, regulators have instructed companies with workers to give them free independent financial advice. It must be advice given by people who do not stand to gain out of the transaction. While this may be laudable, very few give free financial advice. Most of those who give free advice are consumer advocates but they are in short supply. The result is that workers end up with financial advice that is given by people who stand to get monetary gain out of the transfer from company pension to personal pension programs.

Workers Fail to Calculate the Transfer Value

Without independent financial advice, workers will find it difficult to calculate the transfer value. How much do you get from the company scheme in comparison to the new scheme? If the new scheme does not provide that much in pension benefits, then you get a negative transfer value. Aside from that, you simple get missold pension due to the reason of unsuitability. This is one reason why regulators insist on independent financial advice, prior to the decision to change pension programs. Without such advice, the workers will always end up on the losing end.

Why are many workers making the switch? Two reasons stand out after such a lengthy discussion of details. First, companies want to save as much as they can, and as fast as they can. One sure way is to push workers to migrate to personal pension plans. Second, pension companies are offering cash deals for workers who transfer. If you thing 5,000 in cash is not enough, think again. If you were offered the amount, you may grab it at once and end up with missold pension.

PPI Claims Letter From The Banks

It is over 1 year since the banks said they would write to all clients that may have been affected by the ppi claims scandal but not one of the banks has actually released hard facts as to how many they have sent and how many claims they have paid out as a result of these letters.

So what is really happening and is the regulator really monitoring this?

Many people are receiving ppi letters from the banks of that there is no doubt as they are turning to claims management companies for advice as they do not trust the banks assessment of the claim and compensation they are awarding so people are still willing to pay a percentage of their compensation to the claims management company to ensure it is accurate.

There is nothing wrong with this at all and i would encourage people to do it but just do not pay any more than 15% of the claim for the service as any more is simply too much.

The banks have lost so much trust with the consumer that it is going to take them a very long time to recover from this scandal and other scandals that has hit the UK financial markets and surprisingly not one of them has taken the lead to try and restore trust which is the biggest surprise of all.

Banks are in for a stormy ride for the next few years as it is only a matter of time before mortgage cases are taken to court as the Financial Ombudsman does not act fairly with mortgage cases in our opinion and seem to think it is acceptable for clients to be advised to debt consolidate on an interest only mortgage and not suffer as a result something that is crazy to say the least.

So of you have had a letter from your bank regarding your ppi what are your options?

You can write back to the bank in question and accept the offer or their findings or you can request your file from them to check it yourself. The alternative is to use a claims management company to check it for you so you can be confident what the bank has offered is correct but this does come at a price.

If you decide to use a claims management company never pay any money upfront, never pay more than 15% for their service and check the MOJ register to ensure they are a legitimate claims company then you should not be disappointed with the service and outcome of them checking your case or offer.

PPI Claims will cost the industry £25 billion so make sure you get back what is rightfully yours after all the banks took the money under false pretences to start with.

ppi reclaim: Is It The Easy Way Out for Banks?

Banks always want the easy way out. First, they questioned legislation but it did not work. Now they are into ppi reclaim as the easy way out of the mess they are into. But there is price to pay after all the mis selling. Millions of pounds are expected to be refunded to policy holders as a result of court rulings and guidelines from legislators. With all the expenses involved, the end result will still be in favor of the banks. Trust and confidence in their capabilities will be back to an all time high. With receiving claims and refunding them, consumers will entirely lose confidence on the banking system. Such an event can be disastrous to the banking industry.

It Allows Banks to Accept Responsibility

By engaging in ppi reclaim, banks are saying to the general public that they accept responsibility for mistakes they made in the past. Such an admission is the start of the process of recovery. After admitting to the massive incidents involving mis selling banks were able to set up guidelines, systems and centers to cater to claims from those who believe they were mis sold. By this action, positive feedback can emanate from those who were received well and who were given positive results. The highest sign of accepting responsibility is when refunds are finally received by the customer.

It Allows Banks to Make Amends

Banks spend millions in advertising, in order to build a particular image to the consumer. What better way to do this than through ppi reclaim. By advertising how easy it is to file for a claim and how fast the process is, banks can make amends to the consumer. This may be the best advertising program for the bank at this point. Since, there is mistrust and customers are in a wait-and-see attitude, taking advantage of everything that claims can generate will be great for the image of the bank. This is the best way to make amends.

It Allows Banks to Restore Trust

By getting into ppi reclaim banks can slowly restore the trust that was lost due to the effect of the ppi mis selling scandal. Many consumers were downhearted when they heard that banks were negligent in this area, to such an extent that millions of bank customers were mis sold ppi. But with the announcement that you can file a claim and eventually get your refund, trust in the bank is being restored. With the trust, many will now make their transactions with the bank. The bank thrives on interest income and investment income. Without the number of customers to activate this, banks will not have a good bottom line every year.

Banks have to move fast to recover trust and the best way is ppi reclaim. With claims being received daily and later on claims being refunded on a daily basis, due to the sheer numbers, banks have an easy way out of the ppi scandal that hit all the banks and the entire financial industry. As it is, trust in the banks have gone back to normal levels thanks to their emphasis on receiving claims.

ppi claims: How Much Do You Actually Get?

An important aspect in ppi claims, is the question of how much you actually get in the end. While all valid claims will be received, processed and reviewed what concerns most consumers is the actual monetary value at the end of the wait. Regulators have made guidelines based on the court ruling. If you were mis sold, you are entitled to a full refund of premiums and this can include interest if it is applicable. However, since banks have their own method of review, they may contest some of the claims which can be considered normal under the circumstances.

You Will Be Reviewed Thoroughly

When you are into ppi claims, expect that the bank will make a thorough review of your claim. Banks will not hand over to you cash on a silver platter. They will check everything from the validity of your claim, the sales script that the seller used if this is can be accessed and all your documents. The job of the review is to find a reason to reject the claim. If you receive a letter from the bank rejecting your claim, this can be due to the reason that they found fault with your claim. However, this does not mean you cannot contest their decision. Regulators know about this, so they have made protection for the consumer.

You Will Get Back All Your Premiums

If everything goes well with your ppi claims, then you can get back all the premiums that you have paid to the bank. The computation can start from the first premium payment up until the last premium payment. Due to being mis sold payment protection insurance, regulators believe that you are entitled to a refund starting on the first payment you made. Since most ppi policies run for about a year or two, then you can be entitled to a substantial amount. Most ppi premiums are approximately 25 percent of the amount of your loan or mortgage or credit card line.

You Will Get Back Interest If Applicable

You might be asking if interest is included in your ppi claims. Since the refund will come from the bank, it is possible to get your refund together with the interest thereon at the prevailing rate. Since you were deprived of the use of your money, regulators believe that you are entitled to interest on the refund of your premiums. This can add to the amount of your refund and you may discover that it can be substantial in the long run. All in all, a one hundred percent refund can be expected if your claim has no problem.

When ppi claims started there were more rejections than approvals. After the ruling made by the high court, the situation is now reversed. There are now more approvals than rejections. The reason is that some reasons that the banks used to reject claims are now considered illegal by the guidelines issued by regulators. Banks also cannot just reject a claim for any reason that they discover. This has increased the approval rate.