What is a pension scam?

£31 million was lost to pensions scams between 2017 and mid-2020, according to HMRC. It can take people many years to realise that they have been victim to a scam and have lost pension savings.

What is a pension scam?

Scammers may aim to make money by direct access to pension savings or by taking fees or investments. Scams may involve criminal offences, but can also include legal, but unethical behaviour, such as offering unrealistic promises to encourage people to move their money.

Pension scams often involve someone encouraging you to move your money to a dodgy investing scheme, or offers of accessing your pension early in order to convert it to cash.

What to look out for

• Unexpected Calls - There is a government ban on cold calls about pensions. If you haven't asked for a call, you should not receive one.
• Investment Opportunities - An offer of a better investment scheme out of the blue is likely a scam.
• Early Access to Funds - Offers to gain access to your pension before retirement age are likely a scam. Taking your pension early could mean incurring charges.

How to stay safe

• The Financial Conduct Authority has a list of firms and individuals and the permissions they have to carry out financial activities. You can use this to check whether the person or company that has contacted you is genuine.
• If you receive a call from a company you recognise, but you are unsure if it is genuine, hang up immediately and call the number on the company's website.
• Never give out personal or financial details over the phone.
• Read our guide on how to stay safe online.