In united kingdom how to avoid a pension scam

Source: pensionwise.gov.uk Release Time: 10:03:45 2020-02-01

Pension scam – when someone tries to con you out of your pension money – will often start by someone contacting you unexpectedly about:

an investment or other business opportunity that you’ve not spoken to them about before taking your pension money before you’re 55 the ways that you can invest your pension money If someone contacts you unexpectedly and says they can help you access your pot before the age of 55 it’s likely to be a scam.

If someone calls you out of the blue about your pension, the call is illegal and likely to be a fraudster. You should end the call immediately and alert the Information Commissioner’s Office (ICO).

You may be offered a tempting way to invest your pension pot, eg investing it in a new hotel being built in an exotic location. Most of these offers are fake but can appear very convincing. Their aim is to get you to cash in your pension pot and transfer the money.

Once you’ve transferred your money into a scam, it’s too late. You could lose all your pension money as well as face tax of up to 55% or huge additional fees.

How to tell if it’s a scam Watch out if an individual or company:

contacts you unexpectedly (known as a ‘cold call’) about your pension money by phone, text message, visiting you in person, or in other ways says you can access your pension money before 55 and that they can help you with this encourages you to take out a large lump sum, or your whole pension pot in one go, and to let them invest it for youasks you to transfer your money quickly, even sending documents to you by courier - never make a rush decision about your pension moneyuses words like ‘pension liberation’, ‘loan’, ‘loophole’, ‘free pension review’ or ‘one-off investment’offers you an investment described as ‘unique’, ‘overseas’, ‘environmentally friendly’, ‘ethical’ or in a ‘new’ industry Read about avoiding pension scams on the Pensions Regulator website.