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Citizen's Advice warns of new pension scams

10 Aug 2015

Savers over 55-years-old have been warned of repeated cold-calls and emails from fraudsters offering pension opportunities.

According to Citizens Advice, two in five savers have reported being the target of pension scams, while one in ten will fall prey to a scam.

Chief Executive of Citizen’s Advice, Gillian Guy, said: ‘Pension and investment scams are particularly dangerous as they can destroy people’s entire pension pot, leaving them with little or no savings for retirement.  We will be monitoring pension scams closely in order to track how they are evolving, and warn consumers what to look out for. If you’ve had an offer or signed up to a scheme you’re unsure about, contact Citizens Advice for support’.

Half of Citizen’s Advice local workers have reported that pension scams are becoming investment scams, where people are offered lump sums from their pension pots.

Savers have been warned of the prevalent scams to watch out for:

  • Unspecified financial products – fraudsters requesting access to pension funds, promising to invest in financial products on the saver’s behalf, with no explanation of the product details.
  • Free pension reviews – texts or cold-calls with offers of a pension review, including visits to a saver’s home with completion of paperwork.
  • Investments for pension cash – savers are approached with offers to invest pension cash in products such as overseas property or wine.