For many years, pension holders have been targeted by fraudsters with false promises that they can receive cash from their pension before they reach their 55th birthday. Over 55s are now also being targeted by scammers who are convincing them to put their pension savings into fraudulent or badly managed pension schemes or investments.
If you are approached by email, phone, text or in person about receiving cash from your pension before you reach 55 or about withdrawing your pension pot to invest in an investment with a high return or even to receive a ‘free pension review’, then be wary. If you do withdraw a significant amount of your pension then you could have to pay large amounts of tax and if you invest in a bogus scheme or investment you could end up with no money 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