Pension scams are on the increase. Whilst tax rules mean that the earliest age from which you can draw your pension is currently 55, there have been cases where people have been approached out of the blue over the phone, via text message or in person about transferring their benefits to one of these scam arrangements. The scammers have a variety of tricks to catch you out. They may include:
- Pretending that the Government or the pension scheme has asked them to contact you;
- Claiming that you can access your pension pot before age 55;
- Enticing you with upfront cash;
- Offering a free ‘pension review’ or trying to lure you in with so-called ‘one-off’ investment opportunities.
These scams can end up leaving individuals with only a small part, or even none of their pension pot.
You should always seek independent advice from an authorised adviser before making any decision.