Pension scams
01 Jul 2023
Pension scams, where people are tricked by scammers into handing over their pension savings, are on the rise. Everyone involved in pensions, including The Pensions Regulator and the Financial Conduct Authority (FCA), is working hard to tackle the issue.
The Trustees and Aon, the Scheme Administrator, have a duty to look for signs of a pension scam when any transfer is requested. However, you’re also encouraged to take some simple steps to protect yourself from scams.
Further information is available on the FCA’s website: www.fca.org.uk/scamsmart/how-avoid-pension-scams. It includes some top tips on how you can protect yourself and what to do if you suspect a scam.
Common warning signs of a pension scam, according to the FCA, include:
- Being offered a free pension review out of the blue.
- Being offered guaranteed high returns.
- Being offered help to release cash from your pension, even though you’re under the minimum pension age (currently age 55).
- High-pressure sales tactics – scammers may try to pressure you with ‘time-limited offers’, or even send a courier to your door to wait while you sign documents.
- Unusual investments which tend to be unregulated and high risk.
Always remember: if it sounds too good to be true, it probably is!