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How to spot a pensions scam

21 Feb 2024

Unfortunately, there are criminals who want to gain access to people's pensions. Usually they'll try to create scams to convince people to hand over their pots. But, with a bit of information these can be easy to spot. Here are some handy tips and pointers on how to spot pension scams, so you can keep your hard-earned money safe!

Too Good to Be True

Remember the old saying, if something sounds too good to be true, it probably is. Be cautious of anyone promising you more than the usual 25% tax-free portion of your pension or extra high returns from exotic investments. If someone mentions words like ‘loopholes’, ‘cashback’, or ‘savings advance’—think twice!

The ‘Pension Review’ Pitch

Watch out for offers to help access your pension before 55. Usually, this can only happen if you're in poor health or have a particular type of pension plan. Scammers might ask for a fee for these services – another red flag!

Rushing Your Decision

Scammers might try to rush you into making a decision, perhaps through a surprise phone call or urgent couriered documents. Remember, genuine offers won’t need you to decide under pressure. Take your time, speak with a professional, or get a second opinion.

Untraceable Contacts

Legitimate businesses will always have traceable contact details. Be wary of services that only give a mobile number or PO box address. Take a moment to confirm the genuineness of the company through some quick research or verification through official channels.

Think You’ve Been Scammed?

Anyone can be the target of a scam and help is available! You can report scams to Action Fraud or check with the Financial Conduct Authority (FCA) to see if the company is authorised. For ongoing updates on investment scams, FCA’s ScamSmart and independent advice from services like Pension Wise are also great resources.

Final Thought

By being informed, you protect both your peace of mind and your pension pot. Remember, it’s okay to say no or to ask for time to think things over. Your future self will thank you!

At Penny, we are here to help simplify your pension experience and answer any questions you might have about pension security or any other pension topic! Get in touch with our Member Support team anytime.

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SOME IMPORTANT THINGS YOU SHOULD KNOW

Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.

© Copyright 2025 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.

SOCIAL

instagram

SOME IMPORTANT THINGS YOU SHOULD KNOW

Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.

SOCIAL

instagram

SOME IMPORTANT THINGS YOU SHOULD KNOW

Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.

How to spot a pensions scam

Too Good to Be True

The ‘Pension Review’ Pitch

Rushing Your Decision

Untraceable Contacts

Think You’ve Been Scammed?

Final Thought

PENSION

COMPANY

RESOURCES

SOCIAL

SOME IMPORTANT THINGS YOU SHOULD KNOW

© Copyright 2025 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.

PENSION

COMPANY

RESOURCES

SOCIAL

SOME IMPORTANT THINGS YOU SHOULD KNOW

© Copyright 2025 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.

PENSION

COMPANY

RESOURCES

SOCIAL

SOME IMPORTANT THINGS YOU SHOULD KNOW

© Copyright 2025 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.