PENSION SCAMS
Can you afford to lose your retirement savings?
Scams come in many different forms and can result in a transfer of funds to unsuitable and unregulated arrangements, giving rise to unexpected tax charges, or even the entire fund disappearing. In 2024, losses from pension fraud totalled £17.5 million, with an average loss of approximately £34,000 per individual). These scams can severely affect victims’ financial security and retirement plans because it is very hard to replace savings built up over many years later in life.[1]
Tell-tale signs include direct contact out of the blue from someone you don’t know, including by telephone, email or on social media. Scammers will make false claims to gain your trust, and design offers to persuade you to transfer or release funds from your pension to them. These can often be time-pressured with short deadlines to sign documentation.
Artificial Intelligence (AI) is increasingly being used across the pensions industry to make scams more sophisticated and convincing, making it harder for individuals to identify fraudulent approaches. While AI can offer benefits, you should remain vigilant to the risk of scams and fraudulent communications.
If you are considering a transfer of your pension entitlement from the Scheme, you can request a transfer value from the scheme administrator, XPS. You may request one free transfer value in every 12-month period. This transfer value will be guaranteed for three months. Please note that if your benefits are valued at more than £30,000, the law requires you to take independent financial advice from an adviser who is authorised by the Financial Conduct Authority (FCA).
You can check that your adviser is registered with the FCA to provide advice about defined benefit pension transfers at: www.fca.org.uk/firms/financial-services-register
More information on how to identify a scam and help if you think you have been scammed can be foundat:
The Pensions Regulator website hosts four videos in relation to Pensions Scams, the link could be included on the member website - Pension scams: video case study
[1] https://www.thepensionsregulator.gov.uk/pension-scams