PENSION SCAMS
Crafty crooks will stop at nothing to tr y to lure you into handing over your pension pot – so know how to protect yourself!
Scams have surged during the pandemic, according to Action Fraud. The average loss is over £50,000, more than double the average £23,600 lost in 2020. These are the official figures, and many more cases may go unrepor ted if victims are too distressed to come for ward and repor t the crime.
Pension rules introduced back in 2015 mean once you reach 55, you can do what you like with your pension pot, and scammers see this as rich pickings in tr ying to persuade us to invest in fake schemes and dodgy deals.
Cold calls about pensions have been banned since 2019, so put the phone down if anyone calls of fering a pension review, free or other wise, or pushing investment oppor tunities.
New rules brought in by the Government in November should go some way to helping protect against scam transfers. Pension providers have new powers to prevent fraudulent transfers by flagging suspicious requests, and even blocking pension transfers.
It’s wor th remembering that genuine financial advisers are regulated by the Financial Conduct Authority and you can check their credentials on the Financial Ser vices Register at
www.fca.org.uk. There’s good advice on how to avoid pension scams on the FCA’s website.
www.fca.org.uk/scamsmart/ how-avoid-pension-scams
Here’s my top tips:
◆ It pays to be suspicious of all random cold calls. Never ever feel rude putting the phone down!
◆ Check for emails or texts suggesting you consolidate pension funds. If you’ve got small pension pots from past jobs, lumping them together can make financial sense, but it depends on your situation, and there can be costs, so it’s not an of fer to take up on the spur of the moment.
◆ Be on your guard for phrases like “loophole”, “pension liberation” and “guaranteed returns” – all warning signs.
◆ Watch out for anyone claiming that there are ways to access your pension pot before you reach age 55.
◆ You can call Pension Wise, a genuine Government backed organisation to discuss your pension options on 0800 138 3944 or visit www.moneyhelper.
org.uk.