How to spot a pensions scammer

As Ros Altmann, Minister for Pensions, has said recently, “Scammers aim to catch you off guard so they can steal your hard-earned savings. They wreck people's lives; it is as plain and simple as that.”

It is a serious problem and the Pensions Regulator has an ongoing Scorpion Campaign working across the government with a range of partners, to help safeguard savers and support trustees.

There are also steps you can take personally to help protect yourself:

• Beware of anyone calling out of the blue offering a free pensions review. Chelsea would never do this, nor would other reputable pensions providers.
• Beware of companies offering to help you trace lost pensions or obtain a pension statement. These services are free from www.gov.uk
• The Financial Conduct Authority (FCA) Register is a public record of all the regulated firms and individuals in the financial services industry, including retirement income providers and investment companies, which you can check here
• If you suspect a scam please report it to Action Fraud or contact The Pension Advisory Service. The Pension Advisory Service can be contacted on 0300 123 1047.
• Finally, if it sounds too good to be true, it probably is!

Here are four things a scammer may say:

1. “I can help you access your money before you turn 55” - it is only possible to do this in rare situations, for instance if you are very ill. Be careful and always check with your pension provider.

2. “You should take everything out now” -  there are significant tax implications if you take lots of your savings in one go, so check the tax position before you make any decisions.

3. “There is a limited amount of time I can secure this for you” - choosing the right retirement income product(s) is a big decision and shouldn't be done quickly or under pressure.

4. “There is no need to speak to Pension Wise, or get financial advice” - an advisor would be able to explain the rules, the tax implications of different options and help you make the best choices for your personal circumstances, so be very suspicious if this is discouraged. You can always ask The Pensions Advisory Service for free and impartial guidance to talk through your options.