A stark warning to pension savers on the importance of seeking professional financial advice following worrying information released by Action Fraud last week which revealed that pension savers may have lost more than £30 million to scammers since 2017.
The latest figures according to complaints filed with Action Fraud and information from the Financial Conduct Authority and The Pensions Regulator suggest that men aged in their 50s are the most likely victims of fraudsters who target long-term pension savings, with scammers targeting pension pots both big and small.
Our CEO and Managing Partner, Paul Dickson believes other key information quoted within the Action Fraud ScamSmart campaign might go some way to explain why UK workers are falling victim to these scams:
“Within the Action Fraud research just 43% of people approaching retirement knew how much was in their pension pot and 45% did not know how to check if an approach about their pension was legitimate. Set against this, ‘overconfidence’ is referenced as a concern, with 65% saying they would be confident in spotting approach, however, 39% would put themselves at risk unknowingly by engaging with the common scam tactic such as being told it’s a time limited offer, or that there is a guaranteed high return on their savings.”
Indeed the research reports that scammers often design attractive offers to persuade individuals to transfer their pension pot to them; often setting time limited offers or deadlines to pressure people in to acting. Action Fraud go on to report that the true number of victims may actually be even higher than the figures quoted in the research.
Our Joint Managing Director of Armstrong Watson Financial Planning explains that before you make any decision about your life’s savings, you need to research who you are dealing with and has some helpful tips to keep to safe against potential scammers.
As Chartered, independent financial advisers, Armstrong Watson have recognised this issue for some time and are aiming to help tackle the problem in the North of England and Scotland with the recent launch of their Financial Education and Wellbeing service for employers and their employees.
“We believe that financial stability is a huge factor with regard to wellbeing and we’ve recently been working with a number of like-minded businesses, of all sizes and types, providing bespoke financial learning to their employees. This ranges from offering an understanding around pension planning, family budgeting through to savings and investments – we cover whatever it is employees are looking to learn more about.”
To find out more about our Financial Education and Wellbeing Service and the benefits it can bring for employers and employees, click here.