Be ScamSmart with your pension

Unfortunately, we know that the current climate means that there is a heightened risk of scam activity, as scammers look to take advantage of the economic uncertainty surrounding the COVID-19 outbreak. We therefore ask that all of our Members remain vigilant.

Like many scams, the promise of extra money during difficult times can sound very tempting. But these one-off investment opportunities, pension loans or up-front cash offers typically involve high tax charges and penalties, and you risk losing your retirement savings.

The Pensions Regulator is urging pensions savers to stay calm and not to rush any financial decisions. The Regulator recommends four simple steps that can help protect members.

1. Reject unexpected pension offers whether made online, on social media or over the phone.

2. Check who you’re dealing with before changing your pension arrangements. Check the ScamSmart website or call 0800 111 6768 to see if the firm you are dealing with is authorised by the FCA to give advice on pension transfers.

3. Don’t be rushed or pressured into making any decision about your pension.

4. Consider getting impartial information and advice – in some cases it may be a requirement to do so.

For further information on pension scams, see https://www.thepensionsregulator.gov.uk/en/pension-scams

We would encourage you to visit the Money and Pensions Service website for advice before making any decisions about your retirement savings: https://www.pensionsadvisoryservice.org.uk. The MaPS website also contains Information that might be useful for any members who are concerned about the effect of the current economic conditions on their pension.

If you suspect you are being targeted by a pensions scammer, please exercise extreme caution and visit this website which contains valuable information: www.fca.org.uk/scamsmart

Please stay alert – and remember that if something seems too good to be true, it probably is!