Pension scams
How to stay scam smart
While new transfer regulations mean that trustees and scheme administrators now have powers to halt or pause transfers to pension arrangements that raise concerns, you are still the best line of defence when it comes to keeping your pension safe.
That’s why it’s vital you remain vigilant and know how to spot the signs of a pensions scam, how to report one, and what to do if you think you’ve been a victim of one.
Here are some pointers:
How did they contact you?
A genuine company would never contact you out of the blue to offer you a free pension review or an exciting pensions opportunity. Cold calling to sell pensions products has been illegal in the UK since 2019, so if anyone does phone you just end the call.
That doesn’t mean that criminals have stopped trying to separate people from their pensions – they’re just getting around the legislation by contacting via email, text or social media instead – so stay vigilant.
Pressure selling
Scammers also try to pressure people into making decisions quickly, so you don’t have time to do your research or get regulated financial advice.
Be wary of certain investments
Some investment types aren’t regulated by UK law, so if you invest in them you might not be able to trace your money. These often include overseas property or hotels, renewable energy bonds, forestry, parking spaces and storage units.
Be wary of high or guaranteed investment returns
No investment will ever provide returns that are guaranteed to be high. Even the best-performing investments can lose value from time to time.
Legal loopholes
By law you can’t access your pension until you reach age 55 (this is rising to age 57 in 2028), unless you’re in very ill health, without incurring a significant tax penalty. There is no loophole.
Check the Financial Conduct Authority (FCA) Register
Most financial services firms have to be authorised by the FCA. Check their Financial Services Register to see if a firm or individual is authorised or registered with the FCA.
Use the FCA’s website every time you access the Register, rather than by clicking on links in emails or on the website of a firm offering you an investment.
Always check if the firm’s contact details and registration number match the ones on the Register.
If you’re suspicious, report it
If you think you’ve been approached by scammers, you can report the firm or the scam to the FCA by calling 0800 111 6768 or using the FCA’s reporting form
Take advice
Defined benefit schemes provide an income for life that rises with inflation every year and pays death benefits, such as a pension to your spouse or civil partner when you die. Benefits like this can be expensive to replace in another pension arrangement. You also don’t want to lose the money you have built up, potentially over your whole life, from a defined contribution scheme.
That’s why we strongly recommend that if you’re thinking of transferring out of the Schroders Retirement Benefits Scheme (the Scheme), you take regulated financial advice. By law, you have to if your defined benefit section transfer value is over £30,000, but however much your benefits are worth it’s always a good idea to get a professional opinion on whether transferring out of the Scheme is right for you.
For help finding an adviser, take a look at our Guidance and advice section.
Staying in touch – how you’ll know it’s us
We’ll never contact you without your permission first – and no scheme, pension provider or pensions adviser should ever contact you out of the blue to offer you a pension review.
If you get an email or text claiming to be from us, the government or a government-backed organisation, report the number or email.
Be careful what you post online – scammers get a lot of information from social media posts
Limit who can see what you post on social media
Know who you’re dealing with – check any phone numbers, emails and web addresses you’re sent online to make sure they’re genuine
Use strong passwords on your computer and update them regularly