During these unprecedented times, scammers are taking the opportunity to encourage people to withdraw money from their pension pot. As the thought of freeing up some cash could be tempting during a period of financial hardship – you should follow these six simple steps to help protect you and your pension.

6 steps to protect yourself from pension scams

1. Check who you're dealing with

If an individual company contacts you out of the blue to discuss your pension, it's likely to be a scam. You should check out the Financial Conduct Authorities (FCA) register to make sure the person or company is legitimate before discussing anything further.

2. Never give out personal information

You wouldn't share personal information with a stranger so don't make an exception for scammers. Don't give them any information about yourself – specially not investment information or bank details. Remember to trust your instincts if it doesn't feel right.

3. Be aware of false claims

Scammers will make false claims to gain your trust. If they claim you can take the money from your pension before the normal minimum pension age of 55 (this is expected to rise to age 57 from 2028) this is not true and is usually only possible if you're in ill health or you have a protected low pension age.

4. Understand the conditions of your pension

If you're asked to withdraw money from your pension to take advantage of an investment opportunity, you should be wary. Protect your pension savings, as once you've transferred your money into a scam, it's too late.

5. Don't be pressurised into making a quick decision

You should take your time when making decisions about your pension. Don't commit straight away, do your research first and read any documents you receive carefully. Most importantly, don't sign anything, unless you fully understand what you're getting into.

6. Report any worries immediately

If you any concerns, speak to you pension provider or financial adviser. Alternatively, if you don't have a financial adviser, you can visit Money Helper to get free impartial information. You should also report any suspicions to the FCA.

It can be easy to fall for a pension scam, but these 6 steps will help protect you. You can also find more information about pension scams at the website below.

Keep you and your pension safe.


Financial wellbeing Insights