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For members of the Local Government Pension Scheme in England and Wales

Pension scams

Millions of people fall victim to pension scams every year. Anyone can be the victim of a pension scam, no matter how financially savvy they think they are. People may be tricked into handing over their entire pension savings to scammers.

It’s important that everyone can spot the warning signs. The tactics used by pension scammers to encourage people to transfer their pension savings to them are constantly changing. Some of the tactics include:

Once you have transferred your pension savings into a scam it’s too late. You could end up losing all your pension savings. In some cases, you may also face a tax bill of 55% of the value of the pension you transferred.

Four simple steps to protect yourself from pension scams

Step 1 – Reject unexpected offers

If you’re contacted out of the blue about a pension opportunity, chances are it’s high risk or a scam.

If you get a cold call about your pension, the safest thing to do is to hang up – it’s illegal and probably a scam. If you get texts or emails out of the blue, you should ignore them. You can report nuisance calls and messages to the Information Commissioner’s Office (ICO) - This link opens in a new browser window.

Be wary of offers of free pension reviews. Professional advice on pensions is not free.

Don’t be talked into something by someone you know, even a friend or family member. They could be getting scammed. Check everything yourself.

Step 2 – Check who you’re dealing with

Check the Financial Services Register - This link opens in a new browser window to make sure anyone offering you advice or other financial services is FCA authorised, and they have permission to provide you with those services.

If you need help checking, call FCA’s helpline on 0800 1116768.

Make sure the firm you are dealing with is not a clone – a common scam is to pretend to be a genuine FCA authorised firm. Always use the contact details on the Financial Service Register, not the details the firm gives you.

Check the directors’ names and whether the firm is registered with Companies House - This link opens in a new browser window. Search the company name and the directors’ names to see if others have posted any concerns.

You can also check the FCA warning list - This link opens in a new browser window. This will show you if the firm is operating without authorisation.

Step 3 – Don’t be rushed or pressured

Take your time to make all the checks you need. Be wary of promised returns that sound too good to be true and don’t be pressured or rushed into making a decision.

Step 4 – Get impartial information or advice

You should consider seeking financial guidance or advice before making any decision about your pension. See the Financial advice page for information on how to do this.

You will be required by law to take independent financial advice if you want to transfer your LGPS pension to a defined contribution scheme and the value of your pension benefits is more than £30,000.

You can read more about how to Avoid pension scams - This link opens in a new browser window on the Pension Regulator’s website.

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