Pension Scams – don’t become another statistic

Pension Scams – don’t become another statistic

An unknown number calling you, emails with offers too good to be true, unsolicited texts – we’ve all received them. With scammers having more tools at their disposal, it’s getting harder to see the warning signs. It’s no surprise an estimated £1 billion was lost to fraud in the UK in 2023 alone. But what can you do to protect your pension and avoid adding to the stats?

What to look out for?

Too good to be true – A financial adviser has unexpectedly got in touch with a promise to improve the return on your pension savings. If the offer seems unrealistic, or it’s unclear how you would receive improved returns, stay clear. These offers often come with a catch – a short timeframe, or the offer only being available to a few people. It’s easy to rush into a decision that you wouldn’t have usually made, so make sure you take your time looking for warning signs. And if an adviser you’ve not previously dealt with calls you out of the blue, be especially wary: This kind of contact is usually not only against the law, but a sign you’re at significant risk of being scammed.

Accessing your pension early – Except in specific situations, you can only take money from your pension when you’re 55 or older (57 from April 2028). If you’re offered the possibility of taking money before this age, you may be hit with unexpected tax charges. The remaining money will then be invested in high-risk products by the scammers, or outright stolen. If in doubt, contact your pension scheme and tell them about your concerns. Pension schemes have a duty of care, and will flag any issues they suspect to be a scam.

Unexpected payment – You’ve received an email from your pension scheme stating you’re owed money, and they’ve provided a link to process the payment. Are you sure it’s your pension scheme? Or is someone trying to get your bank details? Under no circumstances should you click these links or provide any details. Instead, contact your pension scheme with the details provided on their website

How to keep yourself safe?

It’s easy to read these scenarios and see the warning signs, but it’s hard to catch scams when they’re really happening. Remember:

• Make sure you’re talking to who you think you’re talking to
• Don’t rush into decisions you’re unsure about
• Check that you’re talking to an authorised financial adviser when making financial decisions

If you’re concerned about a potential scam, you can report it to the Financial Conduct Authority (FCA) by clicking here for the FCA’s form or by calling them on 0800 111 6768.

To check a financial adviser is authorised by the FCA, click here to view the Financial Services Register.