Quick answer: Pension scammers usually make contact out of the blue, promise high returns or early access to your pension, and push you to act fast. If you get an unexpected offer about your pension, say no, check the firm on the FCA Register, and get free guidance before you do anything.
Why pensions are a target
Many people have built up tens of thousands of pounds in pensions they rarely look at. Once money leaves a pension through a scam, it is usually gone for good, and you may also face a large tax bill. Scammers can be convincing, with professional websites, glossy brochures and friendly, knowledgeable callers.
Warning signs
- A call, text, email or social media message about your pension that you didn’t ask for. Cold calling about pensions is banned.
- A “free pension review” from a firm you’ve never heard of
- Promises of high or guaranteed returns, or “exclusive” overseas investments
- Offers to release cash from your pension before age 55 (rising to 57 in April 2028), or a “loan” or “cashback” from it
- Pressure to decide quickly, a courier sent to collect paperwork, or being told not to talk to anyone
- A firm that isn’t on the FCA Register, or whose phone number or website doesn’t match the Register
Common pension scams
Early access or “pension liberation”
You’re told you can unlock your pension early. Apart from rare cases such as serious ill health, this isn’t allowed. Unauthorised payments can be taxed at up to 55%, on top of any fees the scammer takes.
Unusual investments
Your pension is moved into something like overseas property, forestry, storage units or crypto. These are often high risk, hard to sell and sometimes don’t exist.
Clone firms
Fraudsters pretend to be a real, authorised firm, copying its name and reference number. The only difference may be the phone number or website. Always use the contact details shown on the FCA Register.
Four steps to protect yourself
- Reject unexpected offers. If someone contacts you about your pension out of the blue, end the conversation.
- Check who you’re dealing with. Look the firm up on the FCA Register and contact it only using the details shown there.
- Don’t be rushed. A genuine adviser will give you time to think and will put their advice in writing.
- Get impartial guidance. The government’s free MoneyHelper service, and Pension Wise if you’re 50 or over, can talk you through your options.
Your pension provider can stop a risky transfer
Pension schemes have to make extra checks before some transfers. If they see warning signs, such as an unexpected contact or an overseas investment, they can ask you to take guidance first or refuse the transfer. They are on your side.
If you think you’ve been targeted
- Haven’t transferred yet? Stop contact and don’t sign anything. Tell your pension provider straight away.
- Already transferred? Contact your old and new providers immediately, and report it to Action Fraud on 0300 123 2040. In Scotland, call Police Scotland on 101.
- Report the firm to the FCA consumer helpline on 0800 111 6768, so it can warn others.
Frequently asked questions
Can I take money out of my pension before 55?
Usually not. The minimum age is 55, rising to 57 in April 2028. Exceptions are rare, such as serious ill health. Anyone offering early access for other reasons is likely to be a scammer.
Is a free pension review always a scam?
Not always, but an unexpected offer of a free review from a firm you don’t know is a common way scams start. Check the firm on the FCA Register and be cautious.
Will Pensions Advice UK cold call me?
No. We only contact you after you’ve made an enquiry and asked us to. We introduce you to FCA-authorised advisers, and you can check them on the Register.
Can I get my money back?
It depends. If an authorised firm gave you bad advice, you may be able to complain to the Financial Ombudsman Service or claim from the FSCS. Money sent to an unauthorised scammer is often very hard to recover.
Related guides
- Check a firm or adviser on the FCA Register
- What is the FCA, and why does it matter to you?
- The Financial Ombudsman Service explained
- FSCS compensation explained
Going to the official FCA ScamSmart website
The FCA’s ScamSmart pages include its Warning List of firms it knows are operating without permission or pretending to be someone else.
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