Pensions have changed. If you are over 55 years old, you can access your pension savings in new ways. Be careful who you take advice from, and don’t become a victim of pension fraud.
Unsolicited approaches offering you the chance to take money from your pension by unlocking some of your retirement pot early.
You could lose everything you have invested, significantly reducing your retirement income.
The Warning Signs
Unsolicited approaches over the phone, via email, text or on the doorstep, including an offer of a ‘free pension review’.
Approaches about accessing your personal or company pension before you’re 55.
- Unsolicited approaches about investing the money released from your pension pot with unusually big returns.
- Calls, emails or text messages claiming to be from the government offering retirement planning advice.
- Requests to provide your phone number and home address and/or personal financial information, when you’re merely enquiring about the products on offer.
- Pushy advisers or ‘introducers’ who offer upfront cash incentives or suggest legal loopholes.
- Offers of a ‘loan’, ‘saving advance’ or ‘cashback’ to take advantage of a deal.
- Being encouraged to speed up the transfer process, including the ‘provider’ using an express courier service for documents.
- Not being informed about the possible tax consequences.
- Documentation being withheld from you, either with or without an explanation.
If you are considering transferring money from your pension fund, get financial advice from an authorised financial adviser first.
Make sure the adviser is authorised to give pensions advice by checking www.fca.org.uk/register
If you’re in any doubt, consult an FCA-registered financial advisor.