saving for retirement

Help in Avoiding Pension Scams



Posted on: 14th April 2022

Saving for retirement is among the most cherished part of your financial profile. This is the key to enjoying your later years no matter what financial turmoil the world takes in later life. You have earned it and have the right to enjoy it.

Unfortunately, pension scams are at an all-time high throughout the UK and pose a significant threat to retirement savings. Falling for a scam can result in the total loss of your pension fund, which is impossible to bring back.

Every day people are being suckered in by the unexpected phone calls, emails, and texts from someone claiming to represent a financial services firm or government body, and they are becoming increasingly sophisticated in their approaches. However, there are signs to look for if you are being targeted by a scam artist so that you can avoid being their victim.

Telltale Signs

Unsolicited cold calls, emails, and texts from a firm in regard to your pension will be unlikely to be legitimate.

You need to discuss with your financial adviser or pension planner any instance where someone has called you out of the blue and claims to work for a government body wanting to discuss your pension planning or offer a pension review. Nearly 100% of these instances would be part of a scam. Getting the details of who has contacted you and providing them to your adviser will get some clarity, and they can be reported to the authorities if they are not a regulated body – which you can check through the Financial Conduct Authority (FCA) and websites.

Too Good to be True Because it is

Schemes offering exceptionally high rates of returns are ones of very high risk – and guaranteed returns are a rarity. This should throw up a caution sign when talking with these types of scammers.

Many words will be used by a scammer to draw you in, such as an offer having a limited timeframe on a one-time offer, or they have found a loophole to better your standing. If these things existed, your trusted independent financial adviser Cheshire would know about them and bring them to your attention.

If they don’t, it is a very telltale sign that these opportunities are not genuine.

Access or Unusual Investment

Some of the biggest pension scams involve participating in a scheme that provides access to your pension before the age of 55, but they will probably skirt around the fact that it will result in severe tax penalties and the potential loss of your funds. An adviser would be quick to point this out and advise against this.

If you are told to invest in an unusual asset – such as offshore hotel developments –

To take advantage of a pension opportunity – is also a red flag for scams.

There are many avenues a scammer will chase you down to gain access to your pension fund. Before making a costly mistake with your financial future, talk over every concern or enquiry with the team at Haven IFA. Whether you’re saving for retirement or require pension advice Manchester, we’re here to help.