Unfortunately we are hearing reports of people being encouraged or scammed into taking their money out of their pension pots. Taking this action without fully understanding the consequences is a significant risk.
Follow these 4 simple steps to protect your pension savings:
- Say no to unexpected pension offers – Cold calling is illegal and you should be wary. An offer of a free pension review from a firm you’ve not used before is probably a scam.
- Check who you’re dealing with – Make sure anyone offering you advice is authorised to give pensions advice by calling the FCA Consumer helpline on 0800 111 6768. If you don’t use an FCA-authorised firm, you won’t have access to compensation schemes.
- Don’t be rushed or pressured – Take your time and make all the checks you need, even if this means turning down an ‘amazing deal’.
- Get impartial information or advice – You should seriously consider taking independent financial advice before changing your retirement benefits. In some cases, you may be required to do so.
For further information, see the Scams Prevention Guide from the Pensions Regulator and Financial Conduct Authority.
If you would like to find a regulated financial adviser click here for further information.
If someone contacts you with a tempting offer on how to access your pension savings before age 55 or avoid paying tax, be very careful. Watch this video produced by The Pensions Regulator or follow this link to the Pensions Regulator’s infographic to find out more information about what to look out for.
