Imagine losing your entire pension pot in the blink of an eye. Years of hard-earned savings can vanish after an investment opportunity that seemed convincing turns out to be a scam. Fraudsters can be persuasive, using professional-looking websites, testimonials and promises of high or guaranteed returns to win your trust. Knowing the pension scam warning signs is the best protection. They often pose as legitimate firms, investment experts or representatives of genuine organisations.
Be wary of unexpected approaches
Pension cold calling is subject to strict rules in the UK. If someone contacts you unexpectedly about your pension, the safest approach is to end the conversation and contact your pension provider using verified details. Treat unexpected emails, texts and investment offers with caution, and be especially wary of anyone offering a ‘free pension review’. A genuine adviser should give you time to consider your options rather than pressure you into an immediate decision.
Know the pension scam warning signs
Pension scam warning signs checklist
Unsolicited contact by phone, email or text
A ‘free pension review’ you did not ask for
High-pressure tactics or a limited-time offer
Promises of huge or guaranteed returns with little or no risk
Overseas property, technology ventures or unregulated investments
Contact details that only come from the person who approached you
Any one of these is a reason to stop and check before going further.
Of all the pension scam warning signs, promises of huge or guaranteed returns with little or no risk are the biggest red flag. Scammers may promote overseas property, technology ventures or other investments that look highly profitable but may be unregulated or simply not exist.
Check who you are dealing with
Before dealing with anyone about your pension, check that they are authorised by the Financial Conduct Authority (FCA) and have permission to provide the service on offer. The FCA’s Financial Services Register can help you verify a firm’s details and permissions.
Do not rely solely on information given by the person who contacted you. Scammers can impersonate genuine firms, so use contact details from official sources rather than telephone numbers, links or websites supplied during an unsolicited approach.
Think before transferring: act on the pension scam warning signs
If you are considering changing your pension arrangements, professional financial advice is essential so you understand your options and the associated risks. Never feel obliged to proceed simply because someone has contacted you. It can also be worth contacting your existing pension provider directly before taking any action. If you have any doubts, pause the process until you are satisfied that the person or firm involved is legitimate.
Related reading: how to protect yourself from pension scams, spotting an investment scam and the FCA’s advice on protecting yourself from scams.
Discuss your situation with us
Advice is given online, at a time that suits you. Our calls and meetings are free, and you only pay if you wish to proceed with our recommendations.
Prefer to talk first? Call 0208 611 2521 (Wimbledon) or 01252 411 851 (Farnham), Monday to Friday, or email info@comptonfinancial.co.uk. In-person meetings in Wimbledon or Farnham are available by pre-arrangement.
This article is for general information and does not constitute tax, legal or financial advice. It should not be relied upon as such. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028, unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would affect the level of pension benefits available.
Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets beyond our control. Investments and the income from them may go down as well as up and you may get back less than the amount invested. Past performance cannot be used as a reliable prediction of future performance.
Compton Financial Services Limited is an appointed representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). FCA number is 460421.
