The Hidden Risks of Pension Transfers for Veterans (And What You Can Do If You’ve Been Misled)

After leaving the military, many veterans were encouraged to transfer their armed forces pension — often without fully understanding the risks. 

At the time, it may have sounded like a smart move: more control over your money, bigger returns, and freedom to invest how you like. But what many veterans weren’t told is that transferring a military pension into a personal scheme is often a one-way street — and one that can lead to serious financial loss. 

If you were advised to transfer your armed forces pension into a personal pension, SIPP, or investment scheme, you may have been mis-sold — especially if the advice didn’t clearly explain the risks or long-term consequences.

What’s the Problem with Pension Transfers? 

Military pensions — including the Armed Forces Pension Scheme (AFPS) — are incredibly valuable. They’re backed by the government, offer inflation-linked benefits, and provide secure income for life. Once transferred out, that guarantee is gone. 

Unfortunately, many veterans were advised to switch to private pensions by financial advisers who didn’t fully explain what was being given up. In some cases, advisers were earning high commissions from the products they recommended — and putting profit before what was best for the client. 

You may have been left with: 

• A pension pot tied to risky or volatile investments 

• Excessive management fees eating into your returns 

• No guaranteed income in retirement 

• Lower overall value than you would have had with your military pension 

• Limited understanding of how your new scheme actually works 

Some veterans only realise the issue years later — often when it’s too late to reverse the decision.

How Do I Know If I Was Mis-Sold a Pension Transfer? 

The signs of mis-selling aren’t always obvious. It’s not just about losing money — it’s about the process being unfair, unclear, or unregulated. 

You might have been mis-sold if: 

• You were encouraged to transfer without a clear explanation of what you were giving up 

• The risks and charges weren’t explained in plain English 

• You felt rushed or pressured to make a decision 

• Your adviser wasn’t FCA-authorised or has since disappeared 

• You’ve lost money or are unsure where your pension actually is 

• You weren’t given a personalised financial assessment 

Even if your adviser was regulated, that doesn’t mean they gave suitable advice. Every pension transfer should be based on your personal circumstances, risk tolerance, and future plans — not just a one-size-fits-all recommendation.

Can I Claim Compensation If I Was Mis-Sold? 

Yes — and it’s often easier than you think. 

If your pension transfer was unsuitable or improperly advised, you may be able to claim compensation through the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS). Even if your adviser is no longer trading, there may still be a route to claim. 

At Justice4Heroes, we specialise in helping veterans like you: 

• Understand your pension transfer and whether it was mis-sold 

• Access legal support through experienced, regulated solicitors 

• Submit claims with the right evidence and backing 

• Recover lost funds, where possible — often with no win, no fee arrangements 

We know the financial world can feel intimidating, especially when trust has already been broken. That’s why we make the process simple, respectful, and veteran-focused. 

Don’t Carry This Alone. We’re Here to Help. 

You gave your all in service — and you deserve to retire with security, not stress. If you suspect your pension transfer wasn’t right for you, now’s the time to take action. 

📞 Call us on: 0800 776 5622 
📩 Email: [email protected] 
🌍 Visit: justice4heroes.org 

Justice4Heroes is here to support UK veterans in securing the justice they deserve.