13 October, 2015
Changes to pension rules have created new opportunities which the Government are calling "Pension Freedom". These changes have also created opportunities for financial fraudsters who have targeted a nationwide average of 9% of retired people according to a nationwide study by MetLife (1,006 retired people sampled by independent market research firm Consumer Intelligence).
Reported frauds involve pensioners buying bogus investment and pension schemes. Retired people have also reported attacks to gain access to their banks or savings accounts through so-called vishing scams. This is where people are tricked into handing over bank details to fraudsters.
The risk of fraud underlines the need for professional financial advice. This is more relevant than ever with defined contribution savers aged over 55 now able to take their funds as cash subject to tax rules.
The Association of British Insurers have launched a campaign to help people avoid pension scams. This is in conjunction with the Pensions Advisory Service, such is their concern over recent scams.
Please note that the information is based on current understanding of taxation and legislation and that such legislation is subject to change. A pension is a long term investment and its value can go down.