Six common pension scams to avoid
Since the advent of pension freedoms, scammers have devised new ways to get hold of your savings

A free daily digest of the biggest news stories of the day - and the best features from our website
Thank you for signing up to TheWeek. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.
Pensions are being increasingly targeted by fraudsters, in the wake of the new rules allowing people greater access to their retirement savings.
The Pensions Advisory Services (Tpas) has warned that it is receiving an increasing number of calls from people who have been contacted by scam artists trying to part them from their pensions.
Since the new pension freedoms came into effect in April there has been a government drive to boost people's awareness of their pension and the options available to them. But smart scammers are using this marketing to their advantage.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"Scammers are almost too bright for their own good," says Michelle Cracknell, the chief of Tpas in Citywire. "We have had imitations of TPAS. The scammers tie it to the Government initiative. People are reading in the papers that the Government is doing something and putting the two together. It's quite dangerous."
Common scams - and how to avoid them
There are many cons used by criminals to try and part people from their pension savings. These are the six most common, according to The Pensions Regulator:
1. You are contacted out of the blue, either by a cold call, text message, website pop-up or someone coming to your door, offering you a free pension review, unique investment opportunity or a legal loophole to boost your pension.
If you are receive an unsolicited contact don’t agree to anything there and then. Say you want to think about it. If the sales person then gets pushy, it's a good sign it is a scam. Get rid of them and do your research. A quick internet search or call to TPAS (0300 123 1047) will show you if the offer is legitimate or not.
2. You are pitched an investment with returns that are too good to be true. The Pension Regulator suggest you should be ware of anything offer more than an 8 per cent return.
Again, take the time to research the offer or speak to an independent financial advisor to see if it is a genuine investment. Remember, if it sounds to good to be true it probably is.
3. Paperwork is delivered to your door requiring immediate signature. Be very wary. If something needs signing but you know nothing about it, don't sign. Tell them you want to read through it carefully first.
4. You are advised to put all of your pension money into a single investment. This is highly likely to be a scam as a financial advisor with your best interests in mind should be telling you to diversify your investments to minimise risk.
5. You are approached by someone saying you can access your pension before age 55. This is undoubtedly a scam that is likely to see you losing huge chunks of your pension. There are financial penalties if you try to access your pension early except in very extreme circumstances, such as terminal ill health.
6. You are advised to transfer to an investment overseas. Be very careful, this is likely to be a scam. Take the time to research the investment and speak to an independent financial advisor or Tpas before you do anything.
As long as pensions exist there will be criminals trying to get their hands on your savings. The police and regulators will never manage to eliminate these cons completely so be on your guard.
"Scammers can't all be stopped. It’s like a balloon, if you push it down in one area it will just pop up in another," says Cracknell.
Continue reading for free
We hope you're enjoying The Week's refreshingly open-minded journalism.
Subscribed to The Week? Register your account with the same email as your subscription.
Sign up to our 10 Things You Need to Know Today newsletter
A free daily digest of the biggest news stories of the day - and the best features from our website
-
The week’s best photojournalism
In Pictures A steaming volcano, a giant crater and more
By Anahi Valenzuela Published
-
Texas and Yelp are suing each other over crisis pregnancy centers
Talking Point A battle over free speech and abortion rights heads to court
By Joel Mathis Published
-
Dianne Feinstein, history-making Democratic US senator, dies at 90
The Explainer Her colleagues celebrate her legacy as a trailblazer who cleared the path for other women to follow
By Theara Coleman Published
-
State pension underpayments: are you getting the right amount?
feature Hundreds of thousands of women may have received less than they were owed
By Rebekah Evans Published
-
Early retirement: what is the ‘FIRE’ movement?
feature Younger workers are aiming to quit the workforce early through extreme saving and investment
By Rebekah Evans Published
-
Should you pay a financial adviser for pension help?
feature Seeking expert advice on retirement investing can be expensive. But it may be worth it.
By Marc Shoffman Published
-
Pension vs. property: which is best for your retirement?
feature While saving into a pension can have tax-free benefits, some will be persuaded by rising property values
By Marc Shoffman Published
-
How to boost your state pension
feature Up to 850,000 people who may be entitled to Pension Credit are failing to claim it
By Marc Shoffman Published
-
How women can bridge the gender pension gap
In Depth New figures have shown the extent of the problem for women in retirement years
By Rebekah Evans Published
-
Annuity vs. drawdown: what’s the best way to access retirement savings?
feature Experts say that annuities could be making a comeback following recent interest rate rises
By Marc Shoffman Published
-
How to find and add lost pensions to your retirement pot
feature UK savers have lost an estimated 2.8 million pots worth a total £26.6bn
By Marc Shoffman Published