Don't become a victim of the pension pot fraudsters -Tricia Phillips

Cold calling crooks are after your hard-earned pension savings we explain how to avoid losing your cash

Keep you pension savings safe

Fraudsters are out in force to cash in on confusion over pension changes with scams to release cash from nest eggs.
More than a third of people have received messages via email or text offering a review of their pension savings or ways to release cash.
Research from Pheonix Group shows a quarter of those approached by pension liberation schemes were tempted to take up the offer and the same number have no idea what to do with savings when they reach 55.

Have you been cold called about your pension yet

The scams

Normally, savings in a pension aren't accessible until you're 55.
But various scams - by text, cold calling or in person - try to persuade you that you can get a better deal by moving your money into overseas investments. These frequently turn out to be unregulated, high-risk or bogus and can see you lose your entire life savings.
Others entice savers to access pensions as a lump sum or loan before age 55, which means they get hit with huge tax penalties and sky high fees from conmen.

The 'free pension review' with a huge cost

Beware people offering to review your pension

 John, 55, is one of those who has been targeted by rogues. He could have lost his life savings after being convinced by a cold caller they were a genuine independent financial adviser with a brilliant investment opportunity.
He is so relieved his wife Jean got suspicious about the free pensions review and investment he was offered.
John explained: “It wasn’t until I got a transfer pack from Pheonix, the firm holding my pension, that I began to have doubts.
"These people are so convincing and clever at making you believe they are the experts and are offering a scheme that is best for you.”
John was offered the chance to invest in property abroad. He was told he could transfer his pension pot to another scheme and buy a share in a hotel.
He was told he would get a guaranteed full return on his investment, as well as a percentage payment on profits from the hotel. But there was no mention of any tax implications or any risk to his money.

The hard sell

'The Wolf of Wall Street' was based on a true story, and the hard sell is still being used by scammers

 He said: “It did sound like a great offer and the chance to make more from my hard-earned cash. They were very pushy and tried to get me to transfer my savings immediately."
The caller tried to get John to make a snap decision, offering to send someone to his home so he could sign transfer forms there and then.
“It is worrying that there are people out there who are out to trick those heading towards retirement out of their pensions,” added John.
Another Pheonix policyholder in his 40s almost lost his entire pension too when fraudsters told him he could get early access to the cash via a legal loophole.
The lure of a commission on top of his pension savings made this an offer that was difficult to resist. Fortunately he stopped the transaction in the nick of time and still has funds are intact.



Culled from the mirror