Pension scams

Pension scams are getting more and more sophisticated, but there are some common things you can watch out for. From cold calling to newer techniques, here are some of the ways a scammer may try to target you.

Cold calls about your pension were banned in January 2019, so you should never get someone interrupting your day to ask about your pension. 

If you do get a cold call about your pension, don't engage with them. Even a small conversation could give them the small bits of information they're looking for to use in the future. So, just hang up. 

If you get a call from someone claiming to be your pension provider, pension scheme, or the government, firmly tell them you'll call them back and hang up. Don't accept any phone numbers or links they offer you, find it yourself on the relevant website. 

Scammers may offer a ‘free’ review of your pension savings with the promise of better returns or recommend you set up a company in your name and then establish a pension scheme under that company's name. They’ll make up problems with your current pension and suggest transferring to a different scheme – often overseas. In reality, it’s a fake pension transfer service that they’ll use to get access to your pension and steal your money. 

The only way to get a proper review of your pension is to consult a regulated financial adviser. If you don’t want to pay for financial advice, you’ll need to do your own research instead. Pension Wise from MoneyHelper is a free, government-backed service for the over 50s. It offers clear and impartial guidance on your retirement options.

Scammers will often lie by saying they can help you access your pension money earlier. Unless you have a protected pension age or are in poor health, you need to be 55 before you can access up to 25% of your pension tax-free, rising to 57 from 6 April 2028.

Taking money from your pension before then will lead to penal tax charges from HMRC. So, scammers who promise to transfer your pension so you can access it may just steal your money.

Before you make any big decisions about taking your pension before retirement age, we recommend speaking to a financial adviser or looking at guidance from Pension Wise.

Genuine pension providers and financial advisers are banned from pressure selling products or dangling time-based offers. If you’re being rushed to make a decision, take a moment and back off. It’s likely you’re dealing with a scammer.

Be wary of pension investments that promise big returns with no risk. These can be pitched as things like overseas investments, new technology or property. All investments carry risk and if something sounds too good to be true, it probably is. Get rich quick schemes rarely work out for anyone but the scammer. 

If you're looking to invest and not sure what to choose, make an appointment with a regulated financial adviser. You can find one on Unbiased, there may be a charge for their advice.

If you think scammers are after your pension, it’s important to take action right away. Firstly, hang up and get in touch with your pension provider directly. Only use phone numbers or email addresses you can confirm on their actual website or on official letters from them. Double check the numbers and make sure they match before calling. Even if the numbers look the same, don't call them back. Put the number you've checked in and call yourself. Let them know what’s been happening, so they can secure your pension and prevent any withdrawals. You should also take the following steps.

Stop communicating

Hang up the phone if you’re called and don’t open any suspicious emails or click on links, just delete them. Don’t give out any more personal information like your bank details, NI number or pension details. 

Report the scam

Contact the police through Report Fraud and the Financial Conduct Authority (FCA). Give them as much information as possible about the scam – like any contact details you were given and exactly what they wanted to you to do. 

Warn others and get advice

Spread the word to family and friends and your social networks, so other people don’t fall victim to scams themselves. It may also be worth speaking to a financial adviser, who can support you with ways to make your accounts more secure.