Pension Scams

Pension scams can have serious consequences and may result in you losing some or all of your pension savings. Scammers often target people who are considering accessing or transferring their pension benefits, particularly where they are unfamiliar with the options available to them.

Scams can take many forms. Examples include:

• Offers to access your pension savings before the normal minimum pension age (currently age 55, rising to age 57 from 6 April 2028, except in limited circumstances such as ill health).
• Requests to transfer your pension to unusual or overseas investments that promise high or guaranteed returns.
• Fraudsters posing as authorised financial advisers, pension providers or Government-backed organisations.
• Investment opportunities involving unregulated or high-risk assets.
• Attempts to obtain your personal or financial information through emails, text messages, phone calls or fake websites.

Scammers may charge significant fees or commissions, and unauthorised access to pension savings can result in substantial tax charges. In the worst cases, individuals can lose some or all of their pension savings.  Some scammers may falsely claim to represent Government-backed guidance services, pension providers or authorised financial firms in order to gain trust.

How to protect yourself

• Be cautious of any unsolicited contact about your pension, particularly phone calls, emails, text messages or social media messages.
• Never feel pressured to make a quick decision about your pension benefits.
• Check that any financial adviser or firm is authorised by the Financial Conduct Authority.
• Read all documentation carefully and ensure you understand where your money will be invested.
• Consider taking regulated financial advice before transferring pension benefits.
• Use MoneyHelper and FCA ScamSmart resources to help identify potential scams.

warning Signs of a pension scam

• You are contacted unexpectedly about your pension.
• You are pressured to make a quick decision or transfer your pension urgently.
• You are offered an investment opportunity that seems too good to be true.
• You are promised access to your pension before the normal minimum pension age.
• You are encouraged to keep the arrangement confidential.
• Information about fees, risks, investments or tax implications is unclear or incomplete.
• The adviser or firm cannot demonstrate that they are authorised by the Financial Conduct Authority (FCA).