What is a pension scam?
From April 2015, you have greater flexibility in how you can access your pension pots. See previously published Pension Changes article.
However, this increased choice may lead to an increased number of scams, such as encouraging people to cash in their pensions and invest in very risky investments. Some of the most common tactics used are:
- Cold calls out of the blue
- Offers of ‘one off’ investment opportunities and phrases like ‘legal loophole’
- Investment returns that seem too good to be true
- Pressure to sign up immediately
- Claims that you can access your pension before age 55
- Transfers of your money overseas.
- Scams can have consequences, such as losing your savings, or facing a large tax bill (if you take your pension savings earlier then allowed to by law).
Download the Pension Scam Booklet from The Pensions Advisory Service, which gives real life examples of pension scams.
You can also call The Pensions Advisory Service on 0300 123 1047 if you want to know more.
Information on scams can also be accessed on the FCA’s website, as can the list of FCA approved advisers:
You can also find an Independent Financial Adviser through:
If you have already been approached and signed a contract, phone Action Fraud on 0300 123 2040 or go to: