Don’t let scammers nick your nest egg

PENSION freedoms have opened a Pandora’s box of opportunities for conmen.

New figures show crooks have swindled £1billion from savers’ pots since 2014.

And they keep finding new ways to steal life savings, the latest being the economic uncertainty caused by the collapse of Carillion.

It’s provided another opportunity for dodgy firms encouraging people through emails and letters to transfer money out of private pension schemes.

Andrew Tully, pensions technical director at Retirement Advantage, said: “These scammers are using increasingly sophisticated ways of trying to defraud cash from people’s hard-earned pensions and savings.

“The basic rule of thumb still stands – if an opportunity sounds too good to be true, it almost certainly is.”

Here we highlight tactics to look out for to help you avoid the crooks and keep your money safe.

SEVEN WARNING SIGNS

1 Beware of an offer to help you access your pension savings before age 55. It is only possible to do this in rare situations, for instance if you are very ill. So be careful and always check with your pension provider. 2 Any recommendation to take a large amount or your whole pension pot in a lump sum and invest it should be checked. There are significant tax implications if you take lots of your savings in one go. Try a free tax calculator such as retirementadvantage.com/ pension-tax-calculator 3 If you’re offered market leading investment returns or “unique investment opportunities”, beware. People have been scammed into investing in car parks, offshore property, storage facilities and, incredibly, truffle trees. 4 If you’re told the deal is limited and you must act now, bin it. Choosing the right retirement income products is a big decision and shouldn’t be taken quickly or under pressure. A genuine financial firm will never push you into make an immediate decision. 5 Some scammers will discourage you from seeking professional financial advice or talking to the Pension Wise service or The Pensions Advisory Service. Be very suspicious. An adviser will be able to explain the rules and tax implications of different options and help you make the best choices for your personal circumstances. 6 Likewise, it’s best to ignore offers for a free pensions review or free advice, often made via phone call. The Government has promised to ban this cold calling, but we don’t know when. 7 Finally, whoever contacts you – it’s easy to check them out, because they should be on the Financial Conduct Authority (FCA) Register. This is a public record of all the regulated firms and individuals in the financial services industry, including retirement income providers and investment companies. Check it at register.fca.org.uk

WHERE TO FIND OUT IF A COMPANY IS LEGIT

Check the Financial Conduct Authority ScamSmart sitefca.org. uk/scamsmart for known scams

The Pensions Advisory Service (TPAS) has a great tool to help identify a potential scam at pensions advisory service. org.uk/ my-pension/ onlinetools ?moreInfo=4

Check with your financial adviser, The Pensions Advisory Service, Money Advice Service or your current pension provider if you have concerns, or call Action Fraud on 0300 123 2040 or contact online at actionfraud.police.uk.

If in any doubt, simply hang up the phone, or delete the text or email without even opening it.

The basic rule of thumb still stands – if an opportunity sounds too good to be true, it almost certainly is