Changes to pension rules are creating new opportunities for scams. Be cautious of anyone approaching you with advice on how to invest your pension.
From April 2015, people over 55 will have greater freedom in how they can access their pension pots. If they have a defined contribution pension, they are no longer restricted to simply buying an annuity. Instead, they can withdraw some or all their money as a lump sum.
There are criminals who will try to take advantage of these new options by tricking people into cashing in their pension and handing over their money for them to invest.
Pension scams are serious: you could lose some, if not all, your pension savings, or end up with a large tax bill (there can be high charges if you withdraw your pension savings early).
What to do if you’re targeted by a pension scam
If you think you’ve been scammed or that someone has tried to scam you, report it to Action Fraud. You can report the scam online or by calling 0300 123 2040.
If you’re considering investing your pension pot, talk to an adviser regulated by the Financial Conduct Authority (FCA). You can check the FCA’s register of firms online and find an Independent Financial Adviser through Unbiased.co.uk.