How to Spot a Pension Scam and Protect Your Savings

Why pensions are targeted

Pensions are often a person's largest asset after their home. Rules that allow people to access their pensions flexibly from age 55 (rising to 57 from April 2028) give scammers an opening. They offer to "unlock" or "free up" money, promise unusually high returns or claim to find a pension you've lost. Once the money is transferred, it can be very hard to get back.

Common types of pension scam

• Pension liberation: offers to release your pension early, before the minimum age, often with a fee or loan. This can mean heavy tax charges, up to 55% of the amount in many cases, and losing your savings.
• Investment scams: persuading you to move your pension into unusual, high-risk or fake investments, such as overseas property, storage units, forestry, green energy, or "guaranteed" returns.
• Free pension reviews: cold calls, emails or texts offering a "free review" which then leads to a recommendation to transfer.
• Fake advice firms or cloned firms: fraudsters pretend to be a legitimate authorised firm, copying their name and details.
• Pension transfer scams: pressure to transfer from a valuable scheme, such as a defined benefit pensionDefined benefit pensionA defined benefit pension promises a retirement income based on your salary and length of service, and the employer carries the investment risk.Read more →, into a risky arrangement.
• Claims from government bodies: fraudsters pretending to be from HMRC, the Pension Service or a trusted charity.

Warning signs

Be on your guard if:

• You are contacted out of the blue by phone, text, email, social media or in person. Cold calling about pensions is banned in the UK except in limited cases, such as where you have an existing relationship with the caller.
• You are promised returns that seem too good to be true, or guaranteed returns with no risk
• You are told to act fast, or that an offer is only available for a limited time
• You are offered a "free pension review", a loan or cash from your pension
• You are told to keep it secret or not to talk to your pension provider, bank or family
• The firm is unwilling to give details of its authorisation or the people involved
• You are asked to transfer money to an overseas account or to an unusual investment
• You are invited to sign documents quickly, or are sent a courier to collect them
• Your adviser has not asked you about your circumstances

Checks to make

1. Check the FCA Register. Any firm giving pensions advice or arranging transfers must be authorised by the Financial Conduct Authority. Search for the firm on the FCA Register and check the contact details match. Do not use details given by the caller. Use the numbers on the Register.
2. Check the FCA Warning List for firms known to be operating without authorisation or cloning legitimate firms.
3. Contact your pension provider directly, using the number on your statement or their official website.
4. Take your time. Genuine firms will not mind if you take time to think.
5. Get free, impartial guidance from MoneyHelper and Pension Wise, and from the Pensions Regulator's scam resources.
6. Talk to someone you trust, such as a family member, friend or accountant.
7. Take regulated advice for big decisions, from an authorised adviser. Ask how they are paid, and confirm they are on the Register.
8. Be wary of transferring out of a defined benefit scheme. Advice is required for large transfers, and a genuine adviser will consider the guaranteed benefits you would be giving up.

What to do if you have been targeted

Protecting yourself in future

• Keep your personal details and pension information private
• Do not share your login details or PINs
• Set up your State PensionThe UK State Pension ExplainedHow the UK State Pension works: eligibility, qualifying years, State Pension age, how to check your forecast, deferring, and filling gaps in your record.Read more → and other accounts through official GOV.UK sites. See state pension explained
• Review your pensions annually. See workplace pensions explained
• Tell older relatives about the common scams and encourage them to speak up
• Use the Pensions Dashboards when available to see all your pensions in one place

Other investment scams

The same warning signs apply to other investmentsInvesting for Beginners: A Plain-English UK GuideInvesting for beginners in the UK: risk and return, funds and shares, diversification, charges, tax wrappers, how to start and the mistakes and scams to avoid.Read more →, such as crypto, forex or "get rich" schemes. See investing for beginners for general advice, and use the FCA tools before handing over money.