Pension scams. How to stay safe?

Pension scams. How to stay safe?

According to Action Fraud, more than £30 millions were lost between 2017 and 2020 in pension scams.

Pension pots are one of the most valuable assets as this guarantees some income in retirement.

Understandably, many people try to search for deals to make the most of their pension and transfer their pension to a new provider.

But, How can you keep your pension safe and avoid being the next victim of an scam?

Some of the red flags to look at are:

• Beware anyone calling out of the blue offering a free pensions review or one-off deals. The best thing to do is to hang up and never provide any personal detail.
• Scammers usually offer high return and no risk. If something sounds too good to be true, be aware.
• Be aware of investments in property, renewable energy bonds and forestry or overseas investment. These are usually high-risk investments only suitable for high-net and professional investors.
• Beware companies offering early access to your money. Generally speaking, you may end up paying an exorbitant early exit fees plus a hefty tax bill.
• Beware of companies offering free help on tracing lost pensions. Scammers may try to gain your confidence and to convince you to move your pension. You can search for any lost pension yourself on the Government website.
• Always obtain financial advice from an authorise financial advisor. You can check whether an adviser is authorise on FCA’s website. You would then have a higher protection if unfortunately something goes wrong.

If the above sounds familiar to you, and you believe you may have been a victim of a scam or lost your pension in a scheme that sounded genuinely no-risk, please contact us on 0113 200 9720.