Pension Scams - Cold Calling About Pensions Is Illegal And Is Likely To Be A Scam - Trading Standards Report

14th March 2024

There have been recent reports of cold callers offering pension reviews. One woman agreed to have a review carried out and was told that she could have a more substantial, easier to manage pension. She was persuaded to transfer £96,000 into an overseas pension scheme, which turned out to be a pyramid scheme. The firm went into liquidation shortly after she had invested in them.
Cold calling about pensions is illegal and is likely to be a scam.

The Financial Conduct Authority (FCA) has published five common warning signs of a pension scam:

Being offered a free pension review out of the blue;

Being offered guaranteed higher returns - claiming they can get you better returns on your pension savings;

Being offered to help to release cash from your pension, even though you're under 55;

High-pressure sales tactics – scammers may try to pressure you with ‘time-limited offers’ or even send a courier to your door to wait while you sign documents;

Unusual investments which tend to be unregulated and high risk.

How to Avoid
The FCA have four steps to avoid pension scams:
Reject unexpected offers - don't respond to unsolicited calls, emails or texts about your pension.

Check who you're dealing with - check the status of a firm before making a financial decision about your pension by visiting the FCA register: register.fca.org.uk/s/

Don't be rushed or pressured into making a decision - take plenty of time to do research and to talk to family or friends

Get impartial information and advice - seek advice from a firm authorised by the FCA before making any changes to your pension arrangements, or contact Money Helper, who offer free independent and impartial information and guidance

Find out more
The Pensions Regulator: www.thepensionsregulator.gov.uk/en/pension-scams

Money Helper UK Guidance on pensions: www.moneyhelper.org.uk/pensions-and-retirement

FCA advice on pension scams: www.fca.org.uk/scamsmart/how-avoid-pension-scams

FCA Financial Services Register: register.fca.org.uk/s

Which? article: www.which.co.uk/news/article/a-cold-call-scam-drained-96000-from-my-pension-savings