New Pension Scam: Know the 8 Signs of This Fraud HERE

According to new research, men are more likely than women to be victims of pension scammers. Overall, 13% of adults have been contacted by fraudsters attempting to steal their retirement funds.

In 2019, the use of cold calling by unscrupulous sharks to defraud people of their life savings has also been prohibited. This was aimed at scammers and unregulated firms that try to convince people to transfer money into unsuitable high-risk investments with steep fees.

How to Protect Yourself from Pension Scams

1. You are contacted unexpectedly – If you receive unsolicited cold calls, texts, or emails about your pension from an individual or firm, they are unlikely to be legitimate.

Fortunately, half of Brits said an unsolicited approach would be a red flag for a pension scam.

Before making any decisions about your pension, contact your pension provider, a regulated financial adviser, or a government body using the contact information on their website.

2. You receive an offer that appears to be too good to be true – Schemes that offer extremely high rates of return are typically very risky, and fully guaranteed returns are uncommon.

You should also be wary and suspicious of language like ‘pension liberation,’ ‘loophole,’ ‘free pension review,’ ‘limited time offer,’ or ‘one-time investment,’ as these can be the precursor to a potential scam.

3. You are offered access to your pension before the age of 55 – You will only be able to access your pension before the age of 55 in very specific circumstances.

Participating in a scheme that allows you to access your pension before that date will result in severe tax penalties and the loss of your funds.

4. You’re expected to invest in an unusual asset – Pensions are typically linked to funds that invest in stocks, bonds, and cash.

The assets you eventually invest in should be familiar and easy to find information about.

Although a ‘self-invested’ style pension allows you to invest in more specialised assets such as commercial property, it is not required to grow your pension pot.

5. You are required to withdraw funds first – The funds contributed to your pension are already invested in a variety of funds or investments made available by your pension provider.

You should never have to withdraw funds from your pension to invest them; the pension scheme should invest them in the funds you choose.

6. You’re told to act quickly to get the best deal – Retirement fund decisions should not be hurried, and any offers of immediate investment for a one-time offer can be risky.

You should take your time and seek appropriate advice and guidance about properly managing your pension.

7. You are given suspicious contact information – Other signs that you are being targeted by pension scammers include a firm refusing to allow you to call them back and contact details that are only a mobile phone number or a PO box.

8. You are told about tax breaks – Someone or a company claims to know about tax breaks or promises additional tax breaks.

Campaigners predicted that crooks would simply switch to new ruses, such as calling from abroad to avoid law, yet raising public awareness about the ban would make people more cautious.

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