24th April 2019

Pension freedom has enabled those approaching retirement to consider a much wider choice of alternative options as to how to employ the pension funds they have accumulated through their careers.

However, unfortunately, the introduction of such freedoms seems to have attracted the interest of undesirables and fraudsters.

A snapshot of the problem can be seen through the actions of the Insolvency Service.

It details on its website applications to court to wind up 24 companies over the last three years where there has been evidence of them carrying out some form of pension misuse.

The service indicates there have been 3,750 victims of these 24 companies alone, and that the misconduct has resulted in individuals and businesses losing more than £200-million.

Common tactics used by pension scammers are cold calls, the offer of free pension advice, lying about their level of expertise and qualifications, and the offer of considerable investment returns from the solutions they offer.

It is worth noting that cold calling related to pensions is now deemed illegal.

Therefore, anyone making such an approach can automatically be dismissed as unethical.

With individuals having taken 40 or more years of hard work to accumulate such pension benefits, it would seem right to take time to consider the options.

Individuals who continue to liaise with a known and trusted adviser to consider the appropriate options for their pension funds are likely to be better positioned to avoid pension or other forms of scammers.

Contact our team at RNS Independent Financial Advisers to be assured of trusted pension advice from local, qualified professionals.