Trading Standards - Pension Scams

20th September 2024

According to new research by LV=, approximately 7.3 million UK adults have been the subject of an attempted pension scam in the past year.

They were encouraged via unsolicited calls, texts and emails to transfer or release money from their pension.

One woman was cold called and offered a free pension review. She agreed 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