Fraudsters may approach you by email, phone, text or in person. Be especially wary if someone promises you access to your pension before the age of 55, tries to convince you to withdraw money to invest somewhere with a high return, or offers you a 'free pension review'. Unsolicited phone calls about your pension are illegal. If you receive one, you should hang up immediately and alert the Information Commission's Office (ICO).
Remember that withdrawing large amounts from your pension can greatly increase your tax bill. And if you invest in a bogus scheme or investment, you could lose everything and have no money left in retirement.
The FCA has recently launched their Scamsmart initiative, which aims to bring attention to how easy it is to fall victim to investment scams, and provides resources to help you avoid them. By visiting Scamsmart, you can check their warning list, report a suspected scam and get impartial advice.Visit Scamsmart
How to avoid pension fraud
Never be rushed into making decisions, don’t be manipulated into giving away information and seek proper financial advice. If you’re concerned there are a number of ways you check the company who have approached you:
Finally, don’t proceed unless you are 100% sure your money will be safe – once you’ve made a transfer, there’s no way back. Remember, if an investment sounds too good to be true, it normally is.
Find out more about how to spot a scam