Pension Scams
Pension Scams
Pension scams are on the increase in the UK. One-off pension investments, pension loans or upfront cash are being used to tempt savers. For the majority these offers will be bogus.
Currently, members can only take up to 25% of pension savings as cash once they are 55 or over.
As such, The Pensions Regulator has increased its focus on improving awareness of Pension Liberation (Pension Scams) With new flexibilities for Defined Contribution Scheme members available from April 2015 the Regulator is concerned that this could drive up Pension Scams.
Pension scams can take many forms and some will appear legal. Methods used include members being contacted by email, text message or in person, statements about ‘one-off investment opportunities’ ‘free pension reviews and ‘government endorsed’ and transfers of money overseas’
The Regulator has asked trustees to help promote awareness of ‘Pension Scams’ to their members. A booklet (opens in new window) is now available to help members understand the risks they face when considering a transfer of their pension savings. Further information is available via their website (opens in new window).
What steps should you take if you suspect a pension scam?
If you believe that you are being directed towards a potential pension scam you can contact the following organisations:
The Pensions Advisory Service on 0300 123 1047
They can advise you on the risks of proceeding with the transfer including potential tax charges.
https://www.gov.uk/government/organisations/the-pensions-advisory-service
Action Fraud on 0300 123 1047
They are the UK’s national fraud and internet crime reporting centre
http://www.actionfraud.police.uk/
You can also check with the FCA (www.fca.org.uk/register) to make sure that the adviser is authorised before you act on any pension advice you receive. The FCA regulates firms and individuals that provide financial advice and also pension providers.
Remember, never be rushed into a decision, once your pension has been transferred it will be too late.
ScamSmart
The Financial Conduct Authority (FCA) has launched its latest campaign to promote its ScamSmart set of website information and tools.
Please click the link below to read more and access this site: