3 red flags to watch out for to protect your pension savings from scammers
Your pension savings might be one of your most valuable assets, aside from your home. This makes them an attractive target for scammers who are continually inventing more sophisticated methods to convince you to part with your money.
Money Marketing reports that 7.3 million Brits were targeted by pension scammers in the 12 months to August 2024, and that 4 million people lost money as a result. Moreover, half of the survey respondents felt that pension scams are becoming more difficult to spot.
So, to help keep your retirement savings safe, read on to discover three red flags to look out for that could alert you to a potential pension scam. Also, find out what to do if you suspect you may have been targeted.
1. Receiving a cold-call about your pension
The Money Marketing report reveals that 14% of people targeted over the past year were contacted through an unsolicited phone call, text, or email. These communications usually encouraged them to transfer or release money from their pension.
A cold-call, text, or email about your pension is an early indicator of a likely scam. This is because cold-calling about pensions is now illegal in the UK.
If you receive a cold-call or unsolicited text or email about your pension, the most sensible course of action is to hang up and ignore the communication without revealing any personal information.
2. Being forced to make a quick decision about an “opportunity”
Another telltale sign of a pension scam is an “opportunity” that is only available for a limited time. If you’re speaking to someone about your pension who claims that you must make a decision about something on the call, chances are you’re speaking to a scammer.
Legitimate pension advisers will always be happy for you to call them back on a number you trust at a later date. So, if you’re at all unsure whether you are at risk of being scammed, it’s sensible to hang up and consult someone you trust for advice.
3. Communications from a firm or individual not registered on the Financial Conduct Authority website
Most financial firms that operate in the UK must be authorised by the Financial Conduct Authority (FCA) to offer financial advice and products to consumers. Those that are authorised will appear on the FCA’s Financial Services Register. If you’re ever unsure about whether a firm is authorised, you can search for their details on the register to confirm this.
If you take financial advice from an unauthorised firm, you won’t be protected by the Financial Services Compensation Scheme (FSCS) if the firm goes out of business. You also won’t have access to support from the Financial Ombudsman.
If you’re at all unsure, make sure you check the Financial Services Register before you proceed.
Your financial planner can also help you protect your savings from pension scams
As well as the steps listed above, consulting your financial planner is another way you can check whether the person you’re speaking to is a scammer or a legitimate adviser. They can also advise you on other ways to keep your retirement savings safe, and the most sensible way to build and access your pension savings.
Our friendly team of financial planners is based in Towcester. We’re here to help you plan for the retirement you dream of.
Email theteam@fortitudefp.co.uk or call us on 01327 354321 to find out more.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.