Be wary of cold-callers who offer a ‘free’ pension review — it could cost you more than you think.
There has been an increase in the number of cold calls since pension freedoms were introduced in 2015, including from fraudsters trying to persuade people to move their pension into unregulated investments.
The government has proposed legislation banning these calls, but this has yet to take effect. Government figures suggest pension savers have lost more than £43 million through such scams. Pensions transfers potentially put your savings at risk, and if you are under 55 you may face additional tax charges. Some cold-callers aren’t trying to pocket your pensions savings, but may recommend higher charging pensions, from which they receive an ‘introducers’ fee.
Please get in touch if you want to review existing pension arrangements, particularly older company schemes.
Occupational pension schemes are regulated by The Pensions Regulator.