10th June 2026
Pension savers will be better protected from scams under new plans announced (Tuesday 9 June 2026), as the Government acts to stay ahead of increasingly sophisticated fraudsters who rob people of their lifetime savings.
New safeguard proposed to tackle pension fraud.
Targeted safeguard to end misuse of Small Self-Administered Schemes with average losses rising to £38,400 per person.
Part of wider government programme to crack down on pension fraud to ensure more can save with confidence.
Pension scams are among one of the most damaging forms of financial fraud. Fraudsters trick savers into transferring their pension pots into bogus schemes, often leaving victims with no way to recover their losses.
The new proposals would mean that where there is no clear link between a saver and the SSAS scheme they are transferring into, a new warning flag would be triggered, enabling the transfer to be stopped.
The consultation also seeks views on cutting red tape that has been slowing down legitimate transfers, making the process simpler for savers who are not at risk of pension fraud.
Torsten Bell MP, Minister for Pensions, said:
Pension scams can rip away not just people’s savings, but the retirement they are looking forward to. This Government is determined to stay one step ahead of criminals who seek to exploit savers.
Too often we see fraudsters trying to trick workers into transferring their savings into bogus pensions. We are stepping in to automatically block transfers where the warning signs are flashing red.
Today’s consultation is the first step in a wider government programme to tackle pension fraud working with government departments and industry stakeholders, including the Pension Scams Action Group (PSAG). Further measures, including potential new legislation, are being developed this year.
Gaucho Rasmussen, Executive Director of Enforcement & Executive General Counsel at The Pensions Regulator (TPR), on behalf of the Pension Scams Action Group (PSAG), said:
Fraud wrecks lives – and tackling it demands strong, coordinated action. Through the Pension Scams Action Group, which TPR leads, we are working closely with the DWP, law enforcement, the pensions industry and other partners to identify emerging threats and stop fraudsters in their tracks.
The targeted safeguard proposed is an important step forward in protecting savers. We urge trustees and administrators to have their say.
The consultation is available at Protecting Pension Savers - Proposals to Amend the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021 - GOV.UK
https://www.gov.uk/government/consultations/protecting-pension-savers-proposals-to-amend-the-occupational-and-personal-pension-schemes-conditions-for-transfers-regulations-2021
The Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021 were introduced to protect scheme members by enabling trustees to pause or refuse transfers where scam indicators are present. A review published in 2023 found the regulations were broadly effective but identified areas of unnecessary complexity.
Small Self-Administered Schemes (SSAS) are a type of occupational pension scheme, typically used by small businesses. Growing concern about their potential misuse for fraudulent activity has been highlighted by industry.
The government’s wider programme of work on pension transfer reform and tackling pension scams is expected to include further work in 2026 on longer-term measures, including potential primary legislation.
The consultation period will provide an opportunity for scheme trustees, scheme members, administrators, and pension professionals to share their views on the proposed changes.
If you are thinking abut Combining small pensions or looking to maximise income read this
Pension transfer scams have become one of the fastest-growing forms of financial fraud in the UK. Fraudsters often target people who have accumulated several small workplace pensions over the course of their careers, persuading them to consolidate these into a single scheme that they secretly control.
The sums involved can be devastating. Many victims lose tens or even hundreds of thousands of pounds that have taken decades to build.
How the scams work
The fraud usually follows a familiar pattern.
1. The unexpected approach
A person receives an unsolicited:
phone call;
email;
text message;
social media message;
online advert.
The fraudster claims they can help "find lost pensions" or "combine all your pensions into one easy plan."
They often present themselves as:
pension advisers;
wealth managers;
retirement specialists;
investment experts.
Some even clone the names and logos of genuine firms.
2. Promises of better returns
Victims are told their existing pensions are:
underperforming;
charging excessive fees;
outdated;
poorly invested.
Instead, they are promised:
guaranteed high returns;
exclusive investment opportunities;
access to overseas markets;
tax advantages.
One major warning sign is any promise of guaranteed or unusually high investment returns. Legitimate investments always involve some level of risk.
3. Pressure to act quickly
Scammers frequently create a false sense of urgency.
They may claim:
"This investment closes next week."
"Government rules are changing."
"You'll miss this opportunity."
The goal is to stop people seeking independent advice.
4. Transferring the pension
The victim signs paperwork authorising the transfer.
Sometimes the new scheme appears entirely legitimate.
It may have:
a professional website;
glossy brochures;
FCA registration details copied from a genuine firm;
impressive-looking offices that are merely virtual addresses.
Only later does the victim discover the pension has disappeared into fraudulent or extremely risky investments.
Common bogus investments
Fraudsters often claim the pension will be invested in:
overseas property developments;
hotel or holiday resort projects;
forestry;
storage units;
renewable energy projects;
carbon credits;
wine or whisky investments;
cryptocurrencies;
rare earth minerals;
parking spaces;
overseas plantations.
Many of these investments either do not exist or are virtually impossible to sell.
Pension liberation scams
Another common fraud involves "early access."
Victims are told they can:
access pension money before age 55 (rising to 57 from 2028 under normal rules);
avoid tax;
receive a cash advance.
In reality:
the payment is often illegal;
HM Revenue & Customs may impose significant tax charges;
the fraudster takes substantial fees;
much or all of the remaining pension can disappear.
Fake pension reviews
Some fraudsters offer a "free pension review."
After reviewing the pension they always conclude that the customer should transfer it into their recommended scheme.
The review itself is simply a sales tool.
Cloned firms
Increasingly, scammers impersonate genuine financial businesses.
They copy:
company names;
websites;
FCA registration numbers;
staff photographs;
email addresses.
This makes it much harder for consumers to spot the fraud.
Why people with several pensions are targeted
Many workers have changed jobs numerous times.
They may have:
five or six workplace pensions;
pensions they have forgotten about;
relatively small pension pots.
Fraudsters exploit this by suggesting consolidation will:
reduce paperwork;
lower charges;
improve investment performance.
While pension consolidation can be beneficial in some cases, it should only be done after carefully comparing costs, investment options, guarantees and retirement benefits, and, where appropriate, obtaining regulated financial advice.
Warning signs
You should be suspicious if someone:
contacts you unexpectedly;
promises guaranteed returns;
pressures you to act quickly;
recommends transferring your pension immediately;
suggests investing overseas without clear explanations;
offers cash before the normal pension age;
discourages you from seeking independent advice;
asks you to sign documents you do not fully understand.
How to protect yourself
Before transferring any pension:
Check that the adviser is authorised by the Financial Conduct Authority.
Contact your existing pension provider using contact details you have found independently—not those supplied by the person who approached you.
Obtain regulated financial advice, particularly for larger pension pots or where valuable guarantees could be lost.
Be wary of unsolicited contact. In the UK, cold calling about pensions is generally banned.
Take time to understand exactly where your pension will be invested and what fees apply.
The bottom line
Consolidating several small pensions can be a sensible way to simplify retirement planning and, in some cases, reduce costs. However, it should be based on a careful assessment of the benefits and risks—not on pressure from someone who contacted you unexpectedly.
Fraudsters know that pension savings are often the largest financial asset people own after their home. By promising higher returns, easier management or early access to cash, they exploit the complexity of pensions to persuade victims to transfer their life savings into schemes that may be fraudulent or unsuitable. Taking time to verify advisers, seek independent guidance and question any offer that sounds unusually attractive can greatly reduce the risk of becoming a victim.