Don’t blow 30 years of pension savings in 30 seconds!
Many of you have paid into pension schemes for decades. But since April 2015, if you’re not careful you could lose it all to scammers in 30 seconds or less, because that’s all it takes to sign your life away.
From April 6th you have more freedom than ever before about how you take money from your pension pot.
But that freedom means lots of scammers will be trying to get their hands on your pension pot, so make sure you get the facts and don’t lose the lot.
The changes will affect you if you are 55 and over and have a pension based on how much has been paid into your pot (a defined contribution pension).
Before you make any decisions that could affect the rest of your life, use the government’s Pension Wise Service to understand your options. Before you sign anything relating to your pension you should also ring the Pensions Advisory Service on 0300 123 1047 for information and advice.
Even if you are under 55, you cannot release your pension unless you are too ill to work. But you should still get the facts so you know how to spot these scams when you do become eligible after 55.
Pension scams: spot the warning signs
Many different types of pension scams are likely to emerge that after 6 April, too many to deal with here, but these are some of the most common tactics the scammers will use to trick you out of your pension pot:
What can you do to scamproof yourself against pension fraud?
If you spot any of the warning signs above – stop and think about it – remember a genuine pension adviser will never rush you into a decision.
- Make sure any adviser you deal with is registered by the Financial Conduct Authority (FCA) at www.fca.org.uk/register
- Look at the FCA’s Scamsmart warning list at www.fca.org.uk/scamsmart – this will tell you the names of investment schemes that are known scams.
- If you are approaching 55 or about to retire Pension Wise can tell you more about what you can do with your retirement pot. Visit the web site at www.pensionwise.gov.uk
- Before you sign anything, call the Pensions Advisory Service on 0300 123 1047 for information and advice about pensions scams.
- If you’ve already signed the papers, report it to Action Fraud at www.actionfraud.police.uk or call 0300 123 2040.