According to The Pensions Regulator millions of people are falling victim to pension scams every year and the tactics they are using are constantly evolving. The Pensions Regulator website states,
“Some of the tactics used by pension scammers include offering free pension reviews, health checks and promises of better returns on their savings, pension loans, upfront cash or other promotions to tempt them. Most of these are bogus. Some scammers are also directing members to transfer their pension savings into small (often one or two member) occupational schemes in an attempt to escape scrutiny from regulators.”
When making any decisions regarding your bank savings, investments or pension savings, it is vitally important to remember:
1. Never be rushed into a decision
2. Always check your adviser is approved by the FCA
3. Make sure you understand all your options
Warning signs and common tactics used by pension scammers:
- A cold call, text message, website pop-up or someone coming to your door offering you a ‘free pension review’, ‘one-off investment opportunity’ or ‘legal loophole’.
- Convincing marketing materials that promise you returns of over 8% on your investment.
- Paperwork delivered to your door by courier that requires immediate signature.
- A proposal to put your money in a single investment. In most circumstances, financial advisers will suggest diversification of assets.
- Claims to help you access your pension before age 55.
- Transfers of your money overseas.
If you think you are being targeted, have already accepted an offer or want to read or hear more on pension scams, then click the link below to go to The Pension Regulators website where you’ll find useful advice, links and phone numbers.
Pensions scams – more information here
The information here is based on The Pension Regulators website.