One in four at risk of pension scams

One in four savers could be at risk of a pension scam, recent analysis has found. A HelpandAdvice.co.uk study has revealed that a quarter of the 1,562 respondents of their Pension Scam Assessment had exhibited red flags. 
 
Just under one in five respondents were told that they could achieve higher investment returns if they transferred. Pressuring people to make a quick decision was also noted as a common red flag, with 15 per cent of respondents experiencing this. Scammers have identified the recent market volatility as an effective tool to mislead vulnerable savers and disguise their true intentions. 
 
Nearly one in ten respondents were advised that there were loopholes to gain access to higher levels of tax-free cash. Pension scammers are very efficient at quickly adapting their tactics to match the current economic climate. With increased financial concern amongst the public, it pays to be extra cautious when something sounds too good to be true. 

The Government has recently announced a ban on cold calling, specifically with regards to the sale of financial products. It is hoped that this legislation will be effective in ending this cruel practice and will provide an extra level of protection to savers. 

Shropshire County Pension Fund has self-certified itself as meeting the standards of the Pensions Regulator’s pledge to combat pension scams. This is an industry standard pledge asking trustees, providers and administrators of pension schemes to do what they can to protect scheme members.