News Detail

06 March 2015

Be aware!

Pension scams are on the increase.   
Pension scams are enticing savers by offering to help them access their pension before age 55 or claiming that people can take more than 25% of their pension as cash. For most people the offers will be bogus and victims will lose most, if not all, of their savings.   
Scammers’ tactics continue to evolve. In-home visits from 'introducers', claims about 'legal loopholes' and unusual investments like overseas property, storage units or biofuels are all used to fool members into thinking they are being offered a legitimate pension transfer.   
Members who agree to transfers may lose all their savings and may still be subject to tax charges of over half their transfer value for taking an 'unauthorised payment'.
The truth is that these members often never see their pension again. Please ensure you check the facts before you make an irreversible decision.  
 Read a guide from The Pensions Regulator to learn more.
Five steps to stay safe:   
1. Do not give out financial or personal information to a cold caller. 
2. Do find out about the company’s background. Any financial advisers should be registered with the Financial Conduct Authority (FCA).   
3. Do ask for a statement showing how your pension will be paid at your Normal Retirement Age. Ask whether there are any tax charges, and question who will look after your money until you retire and draw your pension.   
4. Do speak to an adviser not associated with the deal for unbiased advice.    
5. Do not be rushed into agreeing to a pension transfer.