pension scams

Preventing Pension Scams



Posted on: 17th March 2022

Retirement is something that is truly worked for, and there is no worse feeling than having your pension raided by scammers and being left with nothing. It is something that financial advisers help to warn against, as the scale of pension scams come from all areas.

The Warnings

It is a shock to learn that half of the pension savers don’t believe that they are at risk of being targeted by pension scammers, and the reason being is that they just don’t target high individuals – they prey on smaller pension savers also.

These fraudsters will promise high returns with low risk but will leave the pension completely dry. This leaves many savers without their life savings and an almost impossibility of retrieving the money gone. It does not matter how financially savvy you believe you are; everyone can fall victim to not spotting the warning signs.

Everyone loves to discover a great investment opportunity but promises of a scammer will never come to fruition. The urging to invest an entire pension or release funds from it to invest in such investments as overseas property, renewable energy bonds and others too good to be true can feel like a great opportunity, but the result is one of hardship.

Scammers will even go as far as promising early access to pension pots through loans or loopholes, but savers face losing all of their money and facing high tax bills from HMRC for withdrawing pension savings before the age of 55.

The Telling Signs

Cold calling in regard to pensions is illegal since its ban in 2019, which is why a majority of tactics from a scammer has taken its refuge in the online world. Through online models such as free pension reviews and social media, they are constantly finding new avenues to dupe unsuspecting savers into gaining access to their pensions.

Scammers use a plethora of attractive words to draw a saver in such as ‘pension liberation’, ‘savings advance’ and ‘one off investment’. Some will also guarantee that they provide better returns on pension savings and will help to release cash from your pension before the age of 55 without any mention of the huge tax bill risk.

The biggest sell of a scammer will always be their high-pressure sales tactics such as time-limited offers on their best deals. If these come with complicated investment structures that seem more confusing no matter how many times you ask them to clarify, you may be targeted.

Financial Advisers

Anytime you are offered a high-value investment, you need to speak with an independent financial adviser’s Manchester to know the truth. Advisers have a pledge to protect their clients from pension scams and have the ability to investigate any such investment and report it to the authorities.

For accurate and genuine investment advice and pension advice Manchester, we urge you to speak with our team at Haven IFA for full protection against pension scams and the loss of your pension savings.