Don’t let scammers steal your retirement

With fraudsters becoming ever more sophisticated, and the line between outright fraud, and those selling vastly overpriced, unsafe investments blurring, would you know how to spot a scam?

Online pension provider Pension Bee’s ‘Scams Awareness Report’ found that up to two thirds of people failed to identify some of the most common pension scams, including offers of early pension access and free pension advice.

Those who do fall victim to pension scams risk losing decades worth of savings within just 24 hours, according to the FCA’s and the Pensions Regulator’s joint ScamSmart campaign.

Their research found that no-one is safe, and in fact the more educated you are, the more likely you are to fall victim to a pension scam. For example, those who have a university degree are 40% more likely to accept the offer of a free pension review, a tactic often used by fraudsters, than those without one.

Charles Counsell, Chief Executive, TPR, said: “Scammers wreck lives and no matter how big or small your savings are, every pot is a target. It may seem tempting to make a change to your pension fund now, but it’s important not to rush.”

Under new regulations set by the Department of Work and Pensions (DWP), if there are signs that a scheme you’re considering transferring to might be a scam, trustees and managers will be able to intervene and delay or stop the transfer until the new scheme has proved its credentials. You can read more about these new laws in our article Government introduces measures to prevent pension scams.

Here, we explain how to spot a scam and what to do if you’re a victim.

Author: wpadmin

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