A third of people aged 55 or more have been targeted by potential pensions scams in the last three months, according to new figures.
Data released by Retirement Advantage yesterday (17 February) also suggested this figure is on the increase.
Consumer Intelligence interviewed 610 people aged 55 plus who hold private pensions online between November and December.
The survey showed 35 per cent had been offered free pensions advice or investment opportunities by phone, text, or email.
When the company last asked about pension scams in June, just one in five people aged 55 or more had been targeted by a potential scammer in the last month.
Andrew Tully, pensions technical director at Retirement Advantage, said this was a “huge concern” and seemed to be the start of a trend.
He said: “It is clear there are unscrupulous people preying on certain groups, using increasingly sophisticated and convincing ways of trying to defraud large amounts of cash from people’s pensions.”
The company highlighted five key things to be aware of:
| Watch for... |
1) An offer to help you access your pension savings before age 55. It is only possible to do this in rare situations, for instance if you are very ill, so be careful and always check with your pension provider. |
2) A recommendation to take a large amount of money, or your whole pension pot, in a lump sum and invest it. There are significant tax implications if you take lots of your savings in one go, so check the tax position before you make any decisions. |
3) Warnings that the deal is limited and you must act now. Choosing the right retirement income product(s) is a big decision and shouldn’t be done quickly or under pressure. |
4) You are discouraged from seeking professional financial advice or talking to Pension Wise or The Pensions Advisory Service. An adviser would be able to explain the rules and tax implications of different options and help you make the best choices for your personal circumstances, so be very suspicious if this is discouraged. |
| 5) Contact by somebody who is not on the Financial Conduct Authority Register. |
Mr Tully said: “We all need to be on constant guard: if an opportunity sounds too good to be true, it almost certainly is.”
Last month, Tpas launched a new campaign to help warn people of the dangers of pension scams, including images, messages and tips.
This followed campaign group ACA Pension Life warning consumers about the various liberation watch-words, like ‘legal loophole’ and ‘sophisticated investor’ which fraudsters use.
Back in December, Tilney Bestinvest’s director of financial planning David Smith said up to £9m of pensioners’ cash had been stolen since the at-retirement reforms, a figure he suggested could be artificially low, as many will not have know their money had been taken – yet.
