Don’t let a scammer enjoy your retirement!

The Pensions Regulator has highlighted the potential risk of increased pension scam activity as fraudsters look to prey on people’s pensions.

Fraudsters are clever and know all the tricks to get you to hand over your savings. They are preying on people’s concerns around rising goods and energy prices, inflation, and cost of living pressures. These scam tactics include:

• Contact out of the blue
• Promises of high / guaranteed returns
• Free pension reviews
• Access to your pension before age 55
• Pressure to act quickly.

Did you know?

The Financial Conduct Authority (FCA) conducted research as part of the ongoing ScamSmart campaign. This found that half of pension savers don’t believe they are at risk of being targeted by a pension scammer. But pension scams can happen to anyone, and no pot is too small for a scammer.

Here are four simple steps to protect yourselves:

1. Reject unexpected offers - If you’re contacted out of the blue about your pension, chances are its high risk or a scam. Be wary of free pension review offers. A free offer out of the blue from a company you have not dealt with before is probably a scam. Fortunately, research shows that 95% of unexpected pension offers are rejected.

2. Check who you’re dealing with - Check the Financial Services Register to make sure that anyone offering you advice or other financial services is FCA-authorised.

   If you don’t use an FCA-authorised firm, you also won’t have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme. So, you’re unlikely to get your money back if things go wrong. If the firm is on the FCA Register, you should call the Consumer Helpline on 0800 111 6768 to check the firm is permitted to give pension advice. Beware of fraudsters pretending to be from a firm authorised by the FCA, as it could be what we call a ‘clone firm’. Use the contact details provided on the FCA Register, not the details they give you.

3. Don’t be rushed or pressured - Take your time to make all the checks you need – even if this means turning down an ‘amazing deal’. Be wary of promised returns that sound too good to be true and don’t be rushed or pressured into making a decision.

4. Get impartial information and advice:

   • MoneyHelper (www.moneyhelper.org.uk) – Provides free independent and impartial information and guidance.
   • Pension Wise – If you’re over 50 and have a defined contribution (DC) pension, Pension Wise offers pre-booked appointments to talk through your retirement options at: www.moneyhelper.org.uk/en/ pensions-and-retirement/taking-your-pension/pension-wise
   • Financial advisers – It’s important you make the best decision for your own personal circumstances, so you should seriously consider using the services of a financial adviser. If you do opt for an adviser, be sure to use one that is regulated by the FCA and never take investment advice from the company that contacted you or an adviser they suggest, as this may be part of the scam.

Remember – if something sounds too good to be true, it probably is!