Protecting yourself from pension scams

Pension pots are a favourite target for fraudsters, for a simple reason: it's often the single largest sum of money someone has ever had access to in one place. Losses can run into tens of thousands of pounds, and pension savings are extremely difficult to recover once they're gone. Anyone can be targeted, regardless of how financially experienced they are — scammers are often highly convincing, with professional-looking websites, glowing testimonials, and polished sales materials.

Cold calling about pensions is illegal. Since 2019, it has been against the law for firms to cold call people about their pension. If you receive an unexpected call, text, email, or social media message about your pension, that alone is a strong warning sign — legitimate organisations do not contact you out of the blue about your retirement savings.

Common warning signs to watch for:

• An unexpected approach — by phone, text, email, or social media — about your pension
• Offers of a "free pension review," especially from a company you haven't approached yourself
• Promises of guaranteed high returns, or claims that an investment is "low risk" despite a high return
• Talk of "pension liberation," loopholes, or ways to access your pension before age 55 (57 from 2028) — this is only possible in very rare circumstances, such as serious ill health
• Unusual, complex, or overseas investments — things like forestry, storage units, overseas property, or biofuels
• Pressure to act quickly, "time-limited" offers, or reluctance to let you take independent advice
• Firms claiming to be regulated but with no verifiable contact details, or only a mobile number or PO box

How to protect yourself. Before making any decision about your pension, check whether the firm contacting you is genuinely authorised using the Financial Conduct Authority's register, and check the FCA's Warning List for known scams. Never feel rushed — a legitimate adviser will always give you time to think, get a second opinion, or walk away entirely. If you're at all unsure, MoneyHelper offers free, impartial guidance, and Pension Wise offers a free appointment if you're 50 or over and thinking about accessing your pension.

If you think you've been targeted or scammed. Contact your pension provider immediately — they may be able to halt a transfer that hasn't completed yet. Report it to Action Fraud (now Report Fraud) on 0300 123 2040, and use the FCA's ScamSmart tool to check any firm or offer involved. Don't be embarrassed to report it — these scams are specifically designed to be convincing, and reporting quickly gives you the best chance of limiting the damage and helping protect others.