Some companies are still taking advantage of recent pension reforms to persuade people to invest in schemes that are inappropriate for their circumstances, Simon Morris has warned.
The independent property adviser said: “Customers should always check that companies or websites offering investment products are authorised by the FCA.
“If, for example, a product’s returns sound too good to be true, they probably are, and advisers offering these unrealistic returns are not usually registered with the consumer protection body.”
Citizens Advice has said that some firms are taking advantage of high levels of pension equity release to give people the chance to enter investment deals.
The service revealed that some were acting as IFAs to offer free pension reviews, which they used to persuade people to invest in property and fine wine investment schemes.
Mr Morris said: “As a general rule, investors should also explore a full range of financial products with the help of an IFA, before they invest.”
In June, Jamie Jenkins, head of pensions strategy at Standard Life, said that since the reforms were implemented, the provider had seen approximately 10,000 people take action in the first few weeks.
However, he said this was mostly on pots worth less than £10,000.
John King, adviser for Hertfordshire-based Carematters, said: “Investors must be aware of the consequences of cashing in their pensions. It is crucially important to seek professional advice from a legitimate source, as an adviser can spot a potential mistake and prevent investors from making faulty investments.”