Beware of pension scams

Scammers can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing.

Scammers design attractive offers to persuade you to transfer your pension pot to them or to release funds from it. It is then invested in unusual and high-risk investments like overseas property, renewable energy bonds, forestry, storage units, or simply stolen outright.

Four simple steps to avoid pension scams!

Step 1 - Reject unexpected offers

Be wary if you’re contacted by phone, email or text about any financial product or a free pension review or pension opportunity. The safest thing to do is hang up or ignore them.

Step 2 - Check who you’re dealing with

Check the Financial Services Register to make sure that anyone offering you advice or other financial services is FCA authorised, and that they are permitted to provide you with those services. If you need any help checking, call the Consumer Helpline on 0800 111 6768 or log on to www.fca.org.uk/scamsmart/how-avoid-pension-scams.

Step 3 - Don’t be rushed or pressured

Take your time to make all the checks you need – even if this means turning down an ‘amazing deal’. Be wary of promised returns that sound too good to be true and don’t be rushed or pressured into making a decision.

Step 4 - Get impartial information and advice

You should seriously consider seeking financial guidance or advice before changing your pension arrangements.

MoneyHelper provides free independent and impartial information and guidance.
If you’re over 50 and have a defined contribution pension, Pension Wise offers pre-booked appointments to talk through your retirement options.