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Scam guides
Pension scams
Top tips to stay safe
A pension scam often involves a fraudster targeting someone who has access to their pension and encouraging them to move the funds. Follow our top five tips to stay safe:
- Stay calm: if you get calls offering early access to your pension, don't feel rushed or pressured to respond.
- Don't commit: always seek independent financial advice before making decisions.
- Stop the call: if you feel pressured or if the caller won't take no for an answer, end the conversation. Don't be embarrassed to put the phone down.
- Listen to your doubts: if you think an offer sounds too good to be true, it probably is.
- Do your research: check out the company or person offering the pension advice. Check their background and look for reviews or complaints online.
- Use the FCA’s ‘Firm Checker’: to see if the firm is authorised and has permission for the service it's offering you.
How to spot pension scams
Scammers use different ways to target your pension. Here are the most common tactics:
- Unexpected calls: there has been a government ban on cold calls regarding pensions so you shouldn't receive them unless you have asked them to.
- Early access to funds: someone offering a way to access your pension before you retire could be a scam. Even if it's legitimate, early withdrawal could result in charges. Check with your pension provider using contact details on their website.
- Investment opportunities: if someone calls you out of the blue offering you an investment scheme with attractive returns for your pension pot, then it’s likely to be a scam.
- Pushy ‘advisors’: where you are pressured into making a quick decision about a ‘new’ scheme or encouraged to transfer your pension quickly.
Look at our pension guide to discover how we can help you live well after retiring.
Common pension scams
If you’re told you can access your pension savings before the minimum age of 55, rising to 57 from 2028, this could be a sign of a scam. Sometimes known as ‘pension liberation’ or ‘pension loans’ they could put your savings at risk and may also result in significant tax penalties.
Clone firm scams use the details of legitimate companies to trick people into believing they are dealing with a reputable adviser or pension provider. Only use the contact details in the Financial Services Register or FCA Firm Checker, not the details they give you, to confirm you're dealing with the genuine firm.
Be wary of adverts claiming to offer free pension reviews or no-obligation consultations. Professional advice on pensions shouldn't be free. These free reviews are designed to persuade you to move money from your pension pot into fake or high-risk schemes with the promise of better returns. Visit our investment scam guide to learn more.
A rule change to pensions subject to inheritance tax from 2027 has resulted in an increase in pension scams. Scammers may offer ‘solutions’ to minimise inheritance tax such as moving pension savings into structures or offshore accounts that claim to avoid inheritance tax altogether.
Offers like these are designed to sound reassuring, but they put pensions at serious risk. Checking who you’re dealing with and seeking legitimate financial advice, before making big decisions, can help to protect your retirement savings from these scams.
Scammers can use artificial intelligence (AI) to make fake videos of celebrities promoting their services. Check their official website or social media account to verify. You can learn more about how criminals may use AI in our AI-enabled scam guide.
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