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How to spot a pension scam
New rules which came into effect in March 2014, and proposed new rules from April 2015 mean you will have more choices about how you access your pension pot than you did in the past. Read our guide New rules about pensions from 27 March 2014 for more information.
However, all of these new rules normally only apply to people aged 55 or over.
Unfortunately the advent of these new rules has sparked off new scams and some fraudsters are suggesting the government has asked them to contact you. We’ve even heard of some fraudsters saying they are from the Money Advice Service. Rest assured we will never contact you direct about this. If you receive a call claiming to be from us – or the government - put the phone down.
Pension scams can take many forms and will often appear to be legal. Watch out for these common features of a pension scam:
Often scams are presented as unique investment opportunities for your pension savings, and some companies will get your attention by offering a free pension review. You will be encouraged to transfer your pension quickly, and they may even send documents to you by courier. Once you’ve transferred your pension, it’s too late. Many victims have lost their entire pension savings. Even if you don’t lose your money, you could be asked to pay a large tax bill on top.
What to do if you think you’re being targeted
It is important to check the facts before any irreversible decision is made, as a lifetime’s savings can be lost in a moment.
Find out more information from the Pensions Advisory Service
from https://www.moneyadviceservice.org.u...a-pension-scam
New rules which came into effect in March 2014, and proposed new rules from April 2015 mean you will have more choices about how you access your pension pot than you did in the past. Read our guide New rules about pensions from 27 March 2014 for more information.
However, all of these new rules normally only apply to people aged 55 or over.
Unfortunately the advent of these new rules has sparked off new scams and some fraudsters are suggesting the government has asked them to contact you. We’ve even heard of some fraudsters saying they are from the Money Advice Service. Rest assured we will never contact you direct about this. If you receive a call claiming to be from us – or the government - put the phone down.
Pension scams can take many forms and will often appear to be legal. Watch out for these common features of a pension scam:
- Being approached out of the blue over the phone or via text message.
- Pushy advisers, often unregulated, who claim to be able to help you access your pension before age 55.
- Companies that offer a ‘loan’, ‘saving advance’ or ‘cashback’ from your pension.
- Any reference to ‘loopholes’, overseas investments, creative or new investment techniques.
Often scams are presented as unique investment opportunities for your pension savings, and some companies will get your attention by offering a free pension review. You will be encouraged to transfer your pension quickly, and they may even send documents to you by courier. Once you’ve transferred your pension, it’s too late. Many victims have lost their entire pension savings. Even if you don’t lose your money, you could be asked to pay a large tax bill on top.
What to do if you think you’re being targeted
- If you’re a pension scheme member and concerned that you may have been the target of a pension scam, contact Action Fraud on 0300 123 2040.
- Make sure the adviser is registered at fca.org.uk/register before you agree to anything and is offering regulated advice.
- Never be rushed into making a decision.
It is important to check the facts before any irreversible decision is made, as a lifetime’s savings can be lost in a moment.
Find out more information from the Pensions Advisory Service
from https://www.moneyadviceservice.org.u...a-pension-scam
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