What is a Pension Scam? 

A pension scam is when someone tries to trick you into moving, accessing or investing your pension savings in a way that benefits them rather than you.

Please view the below short video for helpful information on scams or continue reading on to find out more.

Scammers often appear professional and trustworthy. They may claim to be pension experts, financial advisers or investment specialists. Some may even pretend to be authorised by official organisations.

Their aim is usually to gain access to your pension savings, convince you to transfer funds into risky investments, or steal your money altogether.

Common Warning Signs 

Be extra cautious if someone:

  • Contacts you unexpectedly.
  • Promises high returns with little or no risk.
  • Offers a "free pension review".
  • Pressures you to make a quick decision.
  • Tells you to keep the opportunity confidential.
  • Uses complex jargon that makes it difficult to understand where your money is being invested.
  • Claims you can access your pension before the normal minimum pension age.
  • Contacts you through social media or online adverts with investment opportunities.

Remember: If an offer sounds too good to be true, it probably is.

Be Careful of Social Media 

Cold calling about pensions is banned, but scammers have adapted their tactics.

Many now use:

  • Facebook, LinkedIn and other social media platforms.
  • Online investment forums.
  • Email and text message campaigns.
  • Fake websites and online adverts.

Always be cautious when responding to pension or investment opportunities found online, even if they appear professional.

Pension Review Scams 

A common tactic is offering a "free pension review".

You may receive:

  • A phone call.
  • An email.
  • A text message.
  • An online advert.

The scammer may claim they can improve your pension or achieve much better investment returns. In reality, they may be trying to persuade you to transfer your pension into a high-risk or fraudulent arrangement.

Always check that any financial adviser is authorised to provide pension advice before sharing personal information or making decisions.

Early Access Pension Scams 

Be especially wary of anyone who claims they can help you access your pension before the normal minimum pension age.

In most circumstances, you cannot access your pension savings before this age without significant restrictions or penalties.

Offers of early access are almost always a warning sign of a scam and could result in:

  • Large tax charges.
  • Financial penalties.
  • Loss of your pension savings.
  • Involvement in illegal arrangements.

How to Protect Yourself

The Financial Conduct Authority (FCA) recommends four simple steps:

1. Reject Unexpected Offers - If you're contacted out of the blue about your pension, treat it with caution.

2. Check Who You're Dealing With - Before acting, verify that the adviser, company or investment firm is genuine and appropriately authorised.

3. Don't Be Rushed - Legitimate organisations will give you time to think and ask questions. Be suspicious of high-pressure sales tactics.

4. Get Independent Information or Advice - If you're unsure, seek guidance from a trusted source before making any decisions about your pension.

Watch Out for Fraud 

Fraud can take many forms and may not always involve your pension directly.

Fraudsters may attempt to:

  • Steal personal information.
  • Impersonate trusted organisations.
  • Send fake emails or text messages.
  • Create convincing but fraudulent websites.
  • Use emotional pressure to gain your trust.

Protect yourself by:

  • Keeping your personal information secure.
  • Using strong passwords.
  • Not clicking on suspicious links.
  • Verifying requests for personal or financial information.
  • Reporting anything that seems suspicious.

What Should I Do If I'm Unsure? 

If you receive an offer, message or call about your pension and you're uncertain whether it is genuine:

  1. Stop and take time to think.
  2. Do not provide personal or financial information.
  3. Do not rush into a decision.
  4. Contact your pension provider or scheme administrator using trusted contact details.
  5. Seek independent financial guidance before transferring your pension.

Remember

Your pension savings are there to support you in retirement.

Scammers often rely on pressure, urgency and promises of exceptional returns. Taking a moment to check the facts could prevent you from losing some or all of your retirement savings.

 Useful Sources of Help  

If you are considering transferring your pension or have concerns about a potential scam, contact the scheme administrator before taking any action.

Stay alert. Stay informed. Protect your pension.