Pension Scams – How to spot them

People aged 55 and over are receiving phone calls, letters and texts from people wanting to “help” them access their pensions. How can you tell a bona fide adviser from a fraudster? Here are some tips which should help you spot the difference.

Scammers generally try to lure you with promises of one-off investments, pension loans or upfront cash. Once you have signed any forms and the transfer has gone through it’s too late. You could lose all your savings and on top of that be landed with a hefty tax bill to pay.

Common tactics used by scammers

  • A cold call, text message or website pop-up or someone knocking on your door and offering you a free pension review, a one-off investment opportunity, or talking about a legal loophole.
  • Promises of returns of over 8% on your investment – if it sounds too good to be true it probably is.
  • Paperwork delivered to your door by courier that requires immediate signature. Never be pressured into signing anything.
  • An offer that gives you access to your pension before you turn 55 by transferring funds overseas.
  • A proposal that puts all your money into a single investment. Most financial advisers recommend a range of investments to spread the risk.

Don’t become a victim of pension fraud

Do not be pressurised or rushed into signing anything until you are certain. A genuine financial adviser will never rush you into a decision.

If you are consulting a financial adviser, which is a sensible thing to do, make sure that they are registered with the Financial Conduct Authority at

If you’ve already signed papers and suspect a scam, report it to Action Fraud at or call
0300 123 2040.

Read the FCA’s Scamsmart warning list at This lists the names of investment schemes that are known scams. Further information is available from The Pensions Advisory Service.

If you are approaching 55 or about to retire, Pension Wise can tell you more about what you can do with your retirement pot, However, what Pension Wise won’t do is give you advice specific to you, your circumstances and objectives. For that you need to talk to a professional financial adviser.

When can you legally access your pension pot?

You can release funds from your pension as soon as you reach the age of 55. If you’re under 55 you cannot access your pension unless you are certified as being too ill to work. When you do access your pension you could have tax to pay, depending on how much you take and any other income you have. Professional financial advisers can help ensure you don’t pay tax needlessly.

Why seek professional advice from Lighthouse?

A qualified professional financial adviser can guide you through the sometimes confusing world of Financial Services, helping you to protect your family, income or business interests in the event of illness or death. Help you save towards a particular goal such as educational costs for your children or a lump sum to help them buy their 1st home, or maybe a round the world cruise for yourself. Or perhaps relieve the stresses involved with finding a suitable savings and investment solution to save towards a comfortable retirement, plus plan for a sustainable income for you and your family throughout your retirement years.

Professional Financial advisers can also help you structure your investments so as to reduce a potential inheritance tax liability for your family when you are no longer here, or cover the cost of long term care for you or a loved one, along with many more scenarios which are unforeseen.

Our financial advisers can explain your current circumstances and how you can plan for these scenarios in a simple and straightforward way. Helping you to understand their recommended solutions and how they will work towards achieving your goals is central to the advice they provide. Our advisers can also offer regular reviews to check the solutions they have recommended stay on track to meet your goals, and also to react when your goals or circumstances change. These services come at a cost, which will always be discussed and agreed with you prior to the adviser carrying out any work on your behalf – but a good adviser is worth every penny especially when you can rest easy knowing that your financial goals are being supported by an appropriate financial plan.

Lighthouse Group Financial Solutions, through its various divisions, operates a hybrid model allowing advisers and firms to choose whether they want to offer independent or restricted advice.  Some of our advisers have chosen to go restricted as they feel that certain high risk products are not suitable for their clients. Regardless of the type of financial advice offered both will advise and make recommendations for you after your needs have been assessed. Some advisers and firms are also authorised to give advice and make recommendations on mortgages and general insurance products.

Important Information: The value of your investments can go down as well as up, so you could get back less than you invested. The value of your income from your investment can go down as well as up. Tax advice which contains no investment element is not regulated by the Financial Conduct Authority.