Beware of scams!
Pension scheme members are being approached by ‘unregulated’ providers with tempting investment and cash offers for their pension savings. Beware! This type of offer could be a scam, so check carefully before making any decisions. These offers may sound legitimate but they typically offer unusual investments like overseas property or biofuel, promising high returns, whilst not making you aware of the high risks and downsides.
Early access to your pension savings may sound tempting, but usually you can’t access pension savings before either age 50 or 55 unless you are seriously ill. So make sure you check your facts before you make an irreversible decision. If you’d like more information or want to report pension fraud, contact The Pensions Advisory Service, using the details on www.pensionsadvisoryservice.org.uk or Action Fraud on 0300 123 2040. Being taken in by one of these scams is likely to result in you being poorer in retirement, and could mean you face substantial tax charges.
There are certain things to look out for: website promotions, in-home visits from ‘introducers’, cold calls, text messages or adverts encouraging you to transfer your pension to a new arrangement for a cash payment or loan. Please take the time to read the Money Advice Service's guide to pension scams and the Pensions Regulator's guide to pension scams before making any important decisions in relation to your pension savings.