Retirement Advantage is warning retirees to be alert to approaches by fraudsters, after its new research found that one in five over 50s may have been targeted by scammers looking to trick people out of their savings.
The survey, conducted by YouGov, found that 17% of over 50s and 20% of over 55s have been approached by a company offering to help them access their pension early, for instance through legal loopholes or a one-off investment opportunity. More men than women report being targeted, with 22% of men aged 50 or over saying they had been approached compared to 10% of women.
The most common method of contact was by telephone (50%), followed by post (24%) and then email / online (23%).
Andrew Tully, pensions technical director at Retirement Advantage, said: “It is clear that there are already scammers preying on people who might like the idea of using the new pension freedoms to take large amounts of cash from their pension schemes. The scammers may be offering get rich quick schemes or even early access before age 55 to trick people out of their hard-earned savings. Retirees need to be on their guard: if an opportunity sounds too good to be true, it almost certainly is.
“It is vital that the Government and financial industry work together to ensure all practical measures possible are in place to protect people from these scams. We need to make people aware that there are fraudsters hoping to trick them out of their money. Hopefully Pension Wise will help educate people around the risks, but professional financial advice will be crucial to ensure people understand the options available to them and make the right decision for their personal circumstances. The Government also needs to make life difficult for the scammers, and punish those found guilty of preying on innocent victims.”
Retirement Advantage is supporting the ABI’s ‘Your Retirement, Your Choice’ campaign which aims to help customers understand their options and how to avoid being the target of pension scams: https://www.abi.org.uk/Insurance-and-savings/Products/Pensions/Pension-freedom-your-choice/Caution