Could you spot a pension scam?

Have you received an email explaining how to release funds early, a free pension review or have been put under pressure to take up an offer that sounds too good to be true? Then these could all be signs of an attempted pension scam.

The Financial Conduct Authority (FCA) have some really useful advice on how pension scams work, how to spot the signs, how to avoid them and what to do if you think you have received a scam.

Pension scams will often look like an attractive offer that aims to get you to transfer your pension pot or release a sum of money from it.

Spotting the warning signs

Pension scams often include inviting offers such as:

• a guaranteed better return on your pension savings then you currently have
• high-pressure sales tactics and deadlines to respond
• unusual investments, which tend to be unregulated and high risk
• overly complicated information, so it isn’t made clear where your money will end up
• several groups, some of which may be based overseas, (all taking a fee) which means the total amount deducted from your pension is quite significant

Read more about the individual scams and how the fraudsters attempt to steal your money on the FCA website here Pension scams | FCA

If you are worried about money and are looking to use some of your pension to repay existing debts, contact a free debt adviser first to find out what your options are.