According to new figures from Action Fraud, over £17.5 million was lost to pension fraud in 2024. In many cases, this involved people being encouraged via unsolicited calls, texts and e-mails to transfer or release money from their pension.
One woman was cold called and offered a free pension review. She agreed and was told that she could have a more substantial, easier to manage pension.
She was persuaded to transfer £96,000 into an overseas pension scheme, which turned out to be a pyramid scheme. The firm went into liquidation shortly after she had invested in them.
Cold calling about pensions is illegal and is likely to be a scam.
The Financial Conduct Authority (FCA) has published five common warning signs of a pension scam:
- Being offered a free pension review out of the blue
- Being offered guaranteed higher returns – claiming they can get you better returns on your pension savings
- Being offered to help to release cash from your pension, even though you’re under 55
- High-pressure sales tactics – scammers may try to pressure you with ‘time-limited offers’ or even send a courier to your door to wait while you sign documents
- Unusual investments which tend to be unregulated and high risk
How to Avoid
The FCA have four steps to avoid pension scams:
- Reject unexpected offers - don't respond to unsolicited calls, emails or texts about your pension
- Check who you're dealing with - check the status of a firm before making a financial decision about your pension by visiting the FCA register: register.fca.org.uk/s/
- Don't be rushed or pressured into making a decision - take plenty of time to do research and to talk to family or friends
- Get impartial information and advice - seek advice from a firm authorised by the FCA before making any changes to your pension arrangements, or contact Money Helper, who offer free independent and impartial information and guidance
Find out More
- The Pensions Regulator: www.thepensionsregulator.gov.uk/en/pension-scams
- Money Helper UK Guidance on pensions: www.moneyhelper.org.uk/pensions-and-retirement
- FCA advice on pension scams: www.fca.org.uk/scamsmart/how-avoid-pension-scams
- FCA Financial Services Register: register.fca.org.uk/s
