Beware Pension Scams

Pension scams have cost savers a shocking £4bn, according to a Times piece at the weekend which highlighted how cases of mis-selling rose sharply after 2015 – when pension freedom was introduced – while more than 100,000 people transferred out of defined benefit schemes last year.

Don’t get caught out

Continuing down that line, it also says pension transfers leapt from £5.4bn in 2014 to £33bn last year. Despite being warmly received by many, it adds, pension freedoms have been a “boon to scammers”, who have convinced savers to put their money into high-risk investments.

“Pension scams have the potential to be the next big financial scandal,” says former pensions minister Baroness Ros Altmann. “Regulators have failed to respond with adequate urgency and are leaving consumers at the mercy of fraudsters. The fallout risks putting younger people off pensions altogether.”

What we would advise is, beware of Cold Calls regarding Defined Benefit schemes also known as Final Salary schemes. Its illegal to cold call about pensions but it still happens and people still get caught out.