If you’re contacted unexpectedly about a ‘pension opportunity’ - be it by phone, text or even letter - it is likely to be a scam!
Please be aware the below blog is older than 12 months, therefore the information may not be relevant or up to date.
With the current cost of living crisis, people are looking at how to maximise their pension pots. Unfortunately pension scammers are also looking at how to get their hands on your pension pot! Thankfully, there are some easy ways to spot and avoid any potential fraudsters.
Unsolicited contact
If you’re contacted unexpectedly about a ‘pension opportunity’ - be it by phone (which is incidentally now illegal), text or even letter - it is likely to be a scam. If someone turns up on your doorstep trying to talk to you about your pensions, they are almost certainly a scammer. Real advisers don’t knock on people’s door touting for business.
Pretending to be your pension provider
Scammers are getting increasingly smart, so you may be contacted by someone pretending to be from the company you’re a customer of. If you’re not expecting a call or if you’re asked to confirm bank or account details, be on your guard.
If they phone you, do not call them back on the number they provide: use the one from your pre-existing paperwork. Also make doubly sure the phone call has been disconnected.
If you receive a letter or email, check the contact details against your official paperwork and always be wary of hyperlinks on emails taking you to bogus replica websites.
Free pension review
An offer to review your pensions isn’t necessarily a scam. But when it’s offered by a company you don’t recognise, it’s definitely a red flag!
Be especially wary if they mention any of the following:
• loopholes
• high returns
• time limited offers
• unusual asset classes – hotels, storage, forestry or any other single investment
• overly complex schemes
• cash back
Early access to your pension
There are very few circumstances when you can legally access your pension before turning 55. If you’re ever invited to do so this is a clear signal of a scam.
Time and pressure
If the so-called adviser puts undue pressure on you to make a decision quickly because the offer is due to close, it is likely to be a scam.
A genuine adviser won’t ever pressure you to make a snap decision. If we’re going to be really honest, the world of pensions and investments is a relatively slow one and you have all the time in the world to make a decision.
How else can I protect myself?
Along with heeding this advice, there are a few more steps you can take to keep yourself safe:
• If you’re contacted by a firm you don’t recognise, never give out any personal details
• Always use a reputable and appropriately qualified financial adviser – vouchedfor.co.uk and unbiased.co.uk are both good ways to find recommended advisers with specialist pensions qualification
• Check the FCA’s register for legitimate advisers at Financial Services Register | FCA. You can also check its list of unauthorised firms and individuals
• Always contact your pension provider directly, using the original set of contact details
• The Government’s MoneyHelper is a great resource when you’re getting started. It combines Pension Wise, the Pensions Advisory Service and the Money Advice Service. Also bear in mind these companies will never contact you out of the blue!
• Never sign anything without taking legal and/or financial advice from a company you can trust
It’s worth remembering a trusted financial adviser will never object to you carrying out your own due diligence or taking a second opinion. If at any time you think you’ve been approached by a scammer, report them to the FCA by visiting Report a scam to us | FCA or calling 0800 111 6768. If you may have already lost money to a scam, contact Action Fraud on 0300 123 2040 or visit www.actionfraud.police.uk.
Knowledge is protection, so we direct every new Ginkgo client to an excellent video on spotting scams from the award-winning educational platform, MoneyAlive. You can watch this, and other informative videos for free on our website at Videos - Financial advisers, investment, wealth management and pensions advice - Ginkgo Financial Ltd. So, why not grab a coffee and spend five minutes watching something that could save you a lot of money and even more heartache.
By Daren Wallbank
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 07/10/2022
