Pension scams remain a real issue that must be effectively addressed to stop more being victims. Laura Richardson’s latest article sets out how you could potentially save yourself from being just another statistic . . .

Pension scams can leave victims with a reduced, or even wiped out pension fund, forcing them to face a bleak retirement. According to figures released earlier this year by Action Fraud, the average amount of money lost by each victim of pension fraud is over £90,000! With such devastating potential losses, it is important to be vigilant when it comes to your pension.

The majority of pension fraud is conducted following a “cold call” to a potential victim. Despite the fact that these types of unsolicited calls were made illegal in January 2019, research by Ofcom suggests that people in the UK are still receiving 996 million financially related ‘cold calls’ or texts per year! Common tactics to engage people into pension scams include offering higher or guaranteed returns on your investment, early access to your pension, or time-sensitive offers that force you to make a quick decision. These tempting offers are often backed up by a scammer with professional financial knowledge, as well as seemingly credible websites or promotional material which altogether may make it harder to distinguish a scam.

The best approach to take when it comes to protecting your pension is to never discuss your pension with somebody who calls out of the blue as this should be your first warning sign.

If you are not sure whether a caller is genuine or not then the next step is to check the Financial Services Register, under the Financial Conduct Authority. This register lists all FCA approved companies, and furthermore using any companies listed on the register gives you the protection of the Financial Ombudsman and the Financial Services Compensation Scheme. If the company who is calling you is listed on the FCA Register you can further check upon their credibility by calling the FCA Consumer Helpline on 08001116768 to ensure that the company are allowed to offer pension advice. Having ascertained that the company calling is listed and registered to give pension advice, you should always call the company back using the contact details provided on the FCA register, as some scammers use the name of a credible company  and set up a “clone company “ in order to gain the trust of their victim.

The above advice may seem somewhat alarming, but when you consider the potentially life-changing impact of losing your hard-earned pension, you cannot be too careful. Therefore, if you would like to discuss your pension with our trusted partners, contact Andrew Douglas Wills & Legal Services today. For general pension and retirement advice, a review of your current pension, or for an in-depth analysis of your potential income streams during your retirement call today to arrange your free initial consultation whether in Southend or the surrounding areas of Essex.

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