Watch out for scams

You’re particularly vulnerable to pension scammers when transferring your pension. Many people have been cheated out of their pension savings by scammers who claim they can get a lot more from their retirement savings if they transfer them out. 

The Pensions Regulator has produced this guide to help you understand how to avoid being scammed. You can also read our scams factsheet, which highlights some of the common ways that scammers may try to trick you online and gives you some tips on how to protect yourself.

Four simple steps to protect yourself from pension scams 

Reject unexpected offers

• If you’re contacted out of the blue about your pension, chances are it’s high risk or a scam. Be wary of free pension review offers.

Check who you’re dealing with

• Check the Financial Services Register (register.fca.org.uk) to make sure that anyone offering you advice or other financial services is FCA-authorised. Then check they’re permitted to give pension advice by calling 0800 111 6768.
• If you don’t use an FCA-authorised firm, you also won’t have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme. So you’re unlikely to get your money back if things go wrong.
• Fraudsters might clone an FCA-authorised firm’s details, so use the contact details provided on the FCA Register, not the details they give you.

Don’t be rushed or pressured

• Take your time to make all the checks you need – even if this means turning down an ‘amazing deal’. Be wary of promised returns that sound too good to be true and don’t be rushed or pressured into making a decision.

Get impartial information and advice

• MoneyHelper – Provides free, independent and impartial information and guidance.
• Pension Wise – If you’re over 50 and have a defined contribution (DC) pension, Pension Wise offers pre-booked appointments to talk through your retirement options.
• Financial advisers – It’s important you make the best decision for your own personal circumstances, so you should seriously consider using the services of a financial adviser. If you do opt for an adviser, be sure to use one that is regulated by the FCA and never take investment advice from the company that contacted you or an adviser they suggest, as this may be part of the scam. 

There’s lots of information online about how to spot a pension scam. Visit www.pension-scams.com or www.fca.org.uk/scamsmart. You might also find it informative to watch this video produced by the Pensions Regulator, that shows the real-life story of critical care nurse, Pauline Padden, who was scammed out of £45,000. Pauline, 60, was targeted at a vulnerable time in her life and has bravely shared her story to help warn others.