FCA urges consumers to protect pension savings

Following its response to the Work and Pensions Committee’s report on protecting pension savers from pension scams, the FCA is urging consumers to be wary of pension scams and to protect their savings. The FCA wants those saving for their retirement to ‘flip the context’ when approached with online pension offers, by imagining the same offer in person in an everyday, offline setting like a trip to the shops.

The FCA notes that scammers have targeted over £2m in pension pots in the last 5 months and is therefore urging consumers to be aware of the following common warning signs of a pension scam:

  • Being offered a free pension review out of the blue;
  • Being offered guaranteed higher returns – claiming they can get you better returns on your pension savings;
  • Offered to help to release cash from your pension, even though you’re under 55;
  • High-pressure sales tactics – scammers may try to pressure you with ‘time-limited offers,’ or even send a courier to your door to wait while you sign documents; and
  • Unusual investments which tend to be unregulated and high risk.

Lucy Hadrill