Pension scams

Here are 10 tips to help you spot the warning signs of a scam and protect your pension

1. Reject the unexpected

Always reject any unexpected calls, emails, texts or social media approaches about pensions.

A government ban on cold calling regarding pensions came into force in January 2019. So, if you receive any unsolicited marketing calls about your pension, you should hang up. 

2. Ignore 'free pension reviews'

Be very wary if you're offered a free pension review or advice by anyone.

3. Do your own research

Research into who is offering you financial advice. Check the FCA register to make sure they're authorised by the Financial Conduct Authority (FCA) and have permission from the FCA to give you financial advice. 

4. Be aware of pretenders

Sometimes scammers may pretend to be from a firm authorised by the FCA, so you should always use the contact details provided on the FCA register - not the details they give you.

5. Scrutinise websites, even if they look good

Don't be fooled by slick-looking brochures and websites - anyone can pay for a professional-looking one. Check all the contact details and accreditation you see there. If there are none, then it's probably a scam. 

6. Don't be rushed!

Never allow yourself to be rushed into a decision. Take your time to make all the checks you need - even if this means turning down an 'amazing deal'.

7. Look to your pension provider for transfer information

Scammers may tell you that your current pension scheme will try to stop you transferring out, suggesting they just want to keep your money. This is not the case. If your Scheme administrator, Railpen, suspects a scam, we have a legal obligation to try to protect your funds. You can read more on the Transferring in or out page.

8. Never take advice out of the blue

Don't take financial advice from a company that has contacted you out of the blue. We are aware that some companies are proactively contacting members, and would recommend you think carefully before speaking with them. You should never use an adviser they suggest, as this may be part of the scam. Similarly, if you're on the phone, a scammer may suggest you 'call someone else' to gain your trust. But the scammer doesn't close the line. You may think you're on a new call speaking to a trusted adviser, when in fact you're still speaking to a scammer.

9. Check the contact details

If someone has approached you claiming to be from a well-known organisation, check that their contact details match exactly with any letters you’ve received. You could also contact the company directly, using their contact details from their official website.

• Contact numbers and text messages

  Scammers are clever, and they can make their contact numbers look like ones you would usually trust.
  

  A scammer’s message might even appear in a conversation with legitimate texts you’ve already received. If you’re suspicious, avoid clicking links in text messages.
  

  Check who you’re speaking to by contacting the company directly. Don’t use the numbers or address in the message, use the details from their official app or website.
  

• Email addresses

  If you get an email, double check the email address details to see exactly who it has come from. While it might seem legitimate, if it’s a scam, the email address the message has come from might not match up with the sender’s name.
  

  Other tell-tale signs to look out for are:

  • Spelling errors
  • Poor grammar
  • Random numbers in email addresses
  • Asking for PIN numbers or passwords, a legitimate company will never ask you for these details
  • Random competitions, which you may not remember entering

10. Take FCA-regulated advice 

Always get impartial information and FCA-regulated advice before you take any action with your pension. You can find more information on the Guidance and advice page.