The Insolvency Service has urged those saving for retirement to protect their pension pots from ‘investment scammers and negligent trustees’.
Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.
Pension scam victims lost an average of £91,000 to criminals in 2018, Financial Conduct Authority (FCA) research recently revealed. Criminals often use cold-calls and offers of free pension reviews to convince their victims to comply.
The Insolvency Service is urging savers to be wary of calls that come out of the blue; seek financial advice before altering their pension arrangements or making investments; and not be pressured into making decisions about their pension.
‘If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision,’ said Consumer Minister Kelly Tolhurst.
‘The government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.’