Published
5th March 2025
Should you decide to transfer your benefits you should be aware of potential pension scams. Educating yourself and remaining vigilant are key to minimising the risk posed by pensions scams.
A pension scam is when someone tries to trick you into moving, accessing or investing your pension savings in a way that benefits them rather than you.
Please view the below short video for helpful information on scams or continue reading on to find out more.
Scammers often appear professional and trustworthy. They may claim to be pension experts, financial advisers or investment specialists. Some may even pretend to be authorised by official organisations.
Their aim is usually to gain access to your pension savings, convince you to transfer funds into risky investments, or steal your money altogether.
Be extra cautious if someone:
Remember: If an offer sounds too good to be true, it probably is.
Cold calling about pensions is banned, but scammers have adapted their tactics.
Many now use:
Always be cautious when responding to pension or investment opportunities found online, even if they appear professional.
A common tactic is offering a "free pension review".
You may receive:
The scammer may claim they can improve your pension or achieve much better investment returns. In reality, they may be trying to persuade you to transfer your pension into a high-risk or fraudulent arrangement.
Always check that any financial adviser is authorised to provide pension advice before sharing personal information or making decisions.
Be especially wary of anyone who claims they can help you access your pension before the normal minimum pension age.
In most circumstances, you cannot access your pension savings before this age without significant restrictions or penalties.
Offers of early access are almost always a warning sign of a scam and could result in:
The Financial Conduct Authority (FCA) recommends four simple steps:
1. Reject Unexpected Offers - If you're contacted out of the blue about your pension, treat it with caution.
2. Check Who You're Dealing With - Before acting, verify that the adviser, company or investment firm is genuine and appropriately authorised.
3. Don't Be Rushed - Legitimate organisations will give you time to think and ask questions. Be suspicious of high-pressure sales tactics.
4. Get Independent Information or Advice - If you're unsure, seek guidance from a trusted source before making any decisions about your pension.
Fraud can take many forms and may not always involve your pension directly.
Fraudsters may attempt to:
Protect yourself by:
If you receive an offer, message or call about your pension and you're uncertain whether it is genuine:
Your pension savings are there to support you in retirement.
Scammers often rely on pressure, urgency and promises of exceptional returns. Taking a moment to check the facts could prevent you from losing some or all of your retirement savings.
If you are considering transferring your pension or have concerns about a potential scam, contact the scheme administrator before taking any action.
Stay alert. Stay informed. Protect your pension.
