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Top five pension scams and how to avoid them

Updated: Aug 18


We have all seen the jet-ski advert... It’s a very sad reality that there are some nasty people in the world intent on stealing your life’s savings. Don’t fall foul of them. Here are some top tips for avoiding those scammers.


1. An offer to help you access your pension savings before age 55. It is only possible to do this in rare situations, for instance, if you are very ill, so be careful and always check with your pension provider.


2. A recommendation to take a large amount of money, or your whole pension pot, in a lump sum and invest it. There are significant tax implications if you take lots of your savings in one go, so check the tax position before you make any decisions.


3. Warnings that the deal is limited and you must act now. Choosing the right retirement income product(s) is a big decision and shouldn't be done quickly or under pressure.


4. An encouragement not to get professional financial advice or talk to Pension Wise. An adviser would be able to explain the rules and tax implications of different options and help you make the most suitable choices for your personal circumstances, so be very suspicious if this is discouraged.


5. Contact by somebody who is not on the Financial Conduct Authority (FCA) register. The register is a public record of all the regulated firms and individuals in the financial services industry, including retirement income providers and investment companies.


The lesson? Always seek professional advice regarding your pensions!



The articles are for information only and should not be construed as advice or a recommendation. Please seek independent financial advice before taking any action. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.


Note that investments can go down as well as up and you may not get back the full capital invested.

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