Savers must guard their pensions from investment scammers and negligent trustees, The Insolvency Service has warned, as victims of fraudsters lost £91,000 in 2018.
The Insolvency Service has advised people to be wary of cold calls, establish a company’s credentials using the FCA’s Financial Services Register and to seek advice before making any changes to existing pension arrangements.
Since 2015, it has applied to the courts to wind up 24 companies that have carried out a form of pension misuse, with an estimated 3,750 victims and £202m worth of contributions.
Following the wind-up of those 24 companies, eight directors have received a total of 57 years’ worth of directorship disqualifications.
Further investigations are taking place to ensure rogue directors are prevented from managing companies.
In one case, four directors of companies involved in the misuse of £57m worth of pension funds were banned for a total of 34 years.
Consumer Minister Kelly Tolhurst MP said: "Our consumer protection regime is one of the strongest in the world and we are committed to making sure people know their rights.
"If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.
"Government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.
"If you think you might have been a victim, I’d urge you to report it to Action Fraud UK at the earliest opportunity or visit the ScamSmart website for further help."
The government recently announced a ban on cold calling in relation to pensions.
In cases relating to cold-calling, Fast Pensions Ltd and five other connected firms were wound up by the courts in May 2018.
Between 2012 and 2013, 520 people were encouraged to transfer their pension savings from existing providers into one of 15 schemes, with Fast Pensions acting as the sponsoring employer.
A total of at least £21m was invested and people were persuaded to transfer their savings through various methods, including cold calls questioning the performance of their pension funds or offering free pension reviews.
