Pension scam victims lose an average of £91,000 each as fraudsters see the potential for looting savings pots. City regulators are now launching a new campaign aimed at alerting people – especially those in their 40s, 50s, and 60s – to the risk of pension fraud. They want people to check any pensions firm they deal with is authorised.
How the scam works
The scam starts with an unexpected call, text, social media approach or email – offering a free pension review, or a way to make attractive returns on pension savings. But the money may be simply stolen or transferred into a high-risk scheme completely inappropriate for retirement savings. Many offer eye-catching returns or high-rolling investments in hotels or green energy schemes that never materialise or instead lead to losses.
Tips for avoiding scams (Source: ScamSmart)
- Reject unexpected pension offers whether made online, on social media or over the phone
- Check who you’re dealing with before changing your pension arrangements. Check the FCA Register or call the FCA contact centre on 0800 111 6768 to see if the firm you are dealing with is authorised by the FCA
- Don’t be rushed or pressured into making any decision about your pension
- Consider getting impartial information and advice
Redwood Financial Family Wealth & Estate Planners Ltd. is one of the souths leading Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth.
We are registered (No.774469) with the Financial Conduct Authority and we are very proud to offer Free Public Information Seminars on Wills, Trusts & Estate Planning as well as free Initial, no obligation meetings to review your pension planning needs.
For more advice on how to keep your saving, investments and pensions safe from scammers, visit the Financial Conduct Authority website fca.org.uk/scamsmart