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.
