Pension Scams: How to Stay Safe

Learn how to protect yourself from fraudsters

Navigating your pension can seem like a daunting task, especially with the rise of pension scams targeting unsuspecting individuals. It’s essential to stay informed and vigilant to protect your hard-earned savings. In this article, find out what pension scams are, how to recognise the warning signs, and what you can do to keep your finances safe.

What are pension scams?

Pension scams are fraudulent schemes designed to trick you into giving away your pension savings. These scams can take different forms, often tempting you with promises of high returns, easy access to your cash, or exclusive investment opportunities that seem too good to pass up.

Remember: if something sounds too good to be true, it usually is!

Recognising red flags

Being aware of the warning signs is your first line of defence against scams. Here are some common red flags to watch out for:

  • Unsolicited offers: If you receive unexpected messages or calls offering financial advice or investment opportunities, be cautious. Legitimate financial advisers won’t pressure you out of the blue.
  • High-pressure tactics: Scammers often create a sense of urgency, making you feel like you need to make a quick decision. If someone is pushing you to act fast, take a step back and think it through.
  • Too-good-to-be-true returns: Be wary of promises for guaranteed high returns with little or no risk. All investments come with some level of risk, so if it seems too good to be true, it likely is.
  • Lack of regulation: Always check if a company is regulated. For confidence, make sure they’re on the Financial Conduct Authority’s (FCA) Financial Services Register.
  • Confusing language: If the information you receive is filled with jargon or overly complicated, it could be a sign of a scam. Scammers will try to bamboozle you with complex terms that obscure the truth.

How to protect yourself from pension scams

Now that you know what to look for, here are some proactive steps you can take to safeguard your pension:

  • Do your homework: Before you make any decisions about your pension, take the time to research the company or individual offering the investment. Look for reviews and confirm their regulatory status.
  • Get trusted advice: If you’re unsure about a pension offer, talk to a regulated financial adviser. They can help you navigate your options and provide sound advice.
  • Take your time: Don’t rush into any decisions. Scammers often create a sense of urgency, but always consider your options carefully.
  • Report suspicious activity: If you think you’ve been targeted by a scam, you can report it online to the Financial Conduct Authority or call them on 0800 111 6768. Or visit Action Fraud or call them on 0300 123 2040. Your report can help protect others.
  • Stay Informed: Keep yourself updated on the latest scams and tactics used by fraudsters. Knowledge is your best defence!

If you're in any doubt, DO NOT take any action.

Resources

We’ve included a couple of resources so you can arm yourself with more information on recognising scams and protecting against them:

We’re here to help

If you have any concerns or questions about your pension, please don’t hesitate to reach out to us. Together, we can keep your financial future safe.

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