Today, you have more flexibility than ever in how you use your retirement savings. But these greater freedoms have also created even more opportunities for scammers to trick people out of their hard-earned money.
People are especially vulnerable to a scam when transferring a pension. Many of us don’t feel confident managing the process ourselves, and scammers exploit this uncertainty by offering ‘no-obligation’ pension reviews or ‘free’ consultations.
This article brings together expert insight from the Financial Conduct Authority (FCA), the Pensions Regulator and the Pension Scams Industry Group (PSIG), to help you keep your pension safe.
Four simple steps to protect yourself from pension scams
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Reject unexpected offers
A genuine pension or investment opportunity will never arrive out of the blue. Cold calls about pensions are illegal. If you receive an unsolicited text, call or email, it’s highly likely to be a scam. Simply hang up or delete the message and block the number.
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Check who you’re dealing with
Before taking advice or transferring money, check the FCA Register to confirm a person or firm is authorised to provide the services they’re offering. If you’re unsure, call the FCA on 0800 111 6768 (freephone).
Scammers often ‘clone’ legitimate firms’ details, so only use the contact information listed on the FCA Register – not those provided by the person who contacted you. If you use an unauthorised firm, you won’t be protected by the Financial Services Compensation Scheme if things go wrong.
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Don’t be rushed or pressured
Decisions about your pension should be made at your own pace. Scammers often use high‑pressure tactics, pushing you to act quickly, but a genuine adviser will never rush you. Taking the time you need to check and re-check the details is one of the best ways to protect yourself.
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Get impartial guidance and advice
Free, impartial guidance is available from trusted, government-backed organisations like MoneyHelper and Pension Wise. They can help you understand your options, spot warning signs and make informed decisions.
How to spot a pension scam
Here are some of the telltale signs of a scam. Being aware of them can help you protect your retirement savings.
Common warning signs include:
- Phrases such as ‘pension liberation’, ‘pension loan’, ‘loophole’, ‘savings advance’, ‘cashback’ or ‘one‑off investment’
- Promises of guaranteed or unusually high returns on your retirement savings
- Offers to release cash from your pension before the age of 55, without clearly explaining the large tax charges that may apply
- High-pressure sales tactics to get you to act quickly, such as ‘limited‑time offers’ or sending a courier to wait while you sign documents
- Unusual or high‑risk investments, such as property, renewable energy bonds or forestry, many of which tend to be overseas, which makes it difficult to check ownership or even whether the investment exists
- Complicated investment structures that are difficult to understand or poorly explained
- Locking your money into fixed‑term investments, meaning problems may not become obvious for several years.
Remember: the Pensions Regulator believes staying in a defined benefit scheme is in most people’s best interests. The guaranteed income it provides is extremely valuable and difficult to replicate elsewhere.
The dangers of early access
If anyone claims they can help you access your pension before the normal minimum pension age, it’s almost certainly a scam.
50, 55 or 57? Understanding the normal minimum pension age
The government sets the normal minimum pension age (NMPA) – the earliest age you can normally access your retirement savings without facing an additional tax charge. For most UKRF members, the NMPA is rising from age 55 to 57 in April 2028, but some of you have a protected pension age (PPA), depending on things like when you joined the UKRF and what type of benefits you have. A PPA allows access to your benefits from age 55, or in some cases, 50 – but it doesn’t apply to everyone. Scammers often exploit confusion around these changes, so it’s always best to check.
Taking money from your pension before the normal minimum pension age is usually treated by HMRC as an ‘unauthorised withdrawal’ – and may trigger a 55% tax charge.
This applies even if:
- You didn’t realise it broke the rules
- You paid the money back into your pension
- You paid fees to the company involved
- You’ve spent all the money (or it’s been stolen outright by the scammers).
If an FCA-authorised adviser recommends early access, ask for a clear explanation of the tax implication and risks. If the answers are confusing or vague, walk away.
If you suspect a scam
Act quickly if something feels wrong:
- If you’re mid-transfer, contact the Barclays Team immediately
- Contact the FCA using their Helpline (0800 111 6768) or online reporting form
- Contact Report Fraud on 0300 123 2040 (or Police Scotland on 101 if you live in Scotland).
