We’ve quoted the following two paragraphs from a recent Financial Conduct Authority press release (available here: fca.org.uk/news/press-releases/5m-pension-savers-could-put-retirement-savings-risk-scammers). We’ve chosen to post them as they highlight tactics commonly used by scammers targeting your pension savings and investments and gives guidance on how to protect yourself.
“How do pension savers fare when faced with six common scam tactics?
Offering exotic investment opportunities – 23% of 45-65-year-old pension savers would pursue an offer of high returns in either overseas properties, renewable energy bonds, forestry, storage units or biofuels, even though these are high-risk investments and unlikely to be suitable for pension savings.
Calls out of the blue – 23% of 45-65-year-old pension savers would engage with a cold call from a company asking to discuss their pension plans.
Offering early access to your pension pot – 17% of 45-54-year-old pension savers would be interested in a company that offered to get them early access to their pension pot.
Guaranteed high returns on your pension savings – 13% of 45-65-year-old pension savers would pursue an offer guaranteeing returns of 11% on their pension savings.
Offering to review your pension for free – 10% of 45-65-year-old pension savers would say yes to a free pension review from a company they’d never dealt with before.
Time-limited offers – 7% of 45-65-year-old pension savers would say yes to a company who offered a special deal that won’t be around for long and offered to send a courier to sign the paperwork immediately.
Four simple steps to protect yourself from pension scams:
- Reject unexpected pension offers whether made online, on social media or over the phone.
- Check who you’re dealing with before changing your pension arrangements – check the FCA Register or call the FCA contact centre on 0800 111 6768 to see if the firm you are dealing with is authorised by the FCA.
- Don’t be rushed or pressured into making any decision about your pension.
- Consider getting impartial information and advice.”