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Pension Scammers

The pandemic has made it easier for scammers as people are home-based. Anyone can be the victim of a pension scam. It is important that everyone can spot the warning signs before savings are lost. Are you pension scam savvy?  

Scammers

It will not happen to me

The financial regulator estimates over £30m has been lost to pension scammers since 2017. The scammers targeted pension pots ranging from under £1,000 to as much as £500,000 and the average victim being a man in his 50s.

They look for a mug

Scammers try to persuade savers to transfer their entire pension savings by making attractive promises they have no intention of keeping. Often a cold caller (scammer) will promise high returns and low risk. But the person (mug) will lose their entire pension pot and be left with nothing. Being scammed can be devastating and it is near impossible to get the money back.

Warning signs of a pension scam

  • Unsolicited approaches by phone call, text message, email or in person. Since January 2019, there has been a ban on cold calling about pensions.
  • The firm does not allow you to call them back.
  • Forcing quick decisions under pressure, even sending documents by courier.
  • Contact details on their website are only mobile phone numbers or a PO box address.
  • Claim they can help you or a relative unlock a pension before the age of 55. Only in very rare case, such as very poor health, is this possible.
  • Say they know tax loopholes or promise extra tax savings.
  • Offer high rates of return on your investment, but claim it is low risk.
  • Unusual investments or business structures which tend to be overseas.
  • Claim to be a long-term pension investment, helping the firm to melt away before the person checks on the investment performance.

The golden rule is never be rushed into making a pension decision. Use The Pensions Advisory Service to understand their options or speak to an independent adviser authorised by the Financial Conduct Authority (FCA) before making a big investment or pension money transfer. No legitimate pension or investment firm will ever cold call about releasing cash pensions, so alarm bells should be ringing.

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Visit at www.insurewithmax.com  or call the UK call centre 0333 323 0098 for more information.

Important: This article is provided for information purposes only. Please speak to an expert for financial retirement advice.

Sources:

https://www.thepensionsregulator.gov.uk/en/pension- scams#7683219800a84f4180777e2dc35331ac

https://www.moneyadviceservice.org.uk/en/articles/how-to-spot-a-pension-scam#what-is-a-pension-scam 

Date: 19 April 2021 by max robinson