About to retire

Pension Scams

Scammers are targeting pension pots of all sizes – make sure you know how to spot the signs.

Pension scammers are targeting people like you.

Pension scams can be hard to spot as scammers find increasingly sophisticated ways of tricking people into parting with their money. Scams are often disguised with credible websites, testimonials and materials which make them look like the real thing.

Vodafone and the Vodafone Group Pension Scheme (VGPS) Trustee will always work to keep your pension safe and will provide you with the most up-to-date advice on how you can protect yourself from scams. The VGPS Trustee is also proud to have committed to The Pensions Regulator’s ‘Pledge to Combat Pension Scams’. This means that the Trustee will take further actions to protect you and your VGPS benefits, including regularly warning you about pension scams and reporting suspected scams to the authorities. To find out more about the Pledge, visit The Pensions Regulator’s website.

In November 2021, the Government issued new regulations which give the Trustee the power to refuse pension transfers where there is a heightened risk that it might be part of a scam. This means that if you put in a request to transfer your VGPS benefits to a different scheme, there will be additional checks to ensure your request meets certain conditions before the transfer can go ahead. This may result in the transfer taking a little longer than it would have done in the past. You are still the first line of defence against scammers, and you must continue to be vigilant, but these regulations help the Trustee to protect your VGPS benefits further.

You can move your benefits from VGPS to another registered pension scheme. Defined Benefit (DB) retirement benefits can be very valuable. Moving your benefits is a significant decision which must be considered carefully.

If your benefits are worth more than £30,000 you are required, by law, to take independent financial advice.

You can find an Independent Financial Adviser at MoneyHelper.

People with DB pension benefits are targeted by scammers who may encourage you to transfer your funds out of the Scheme so that they can take your money.

You can find out more about by reading the FCA’s ScamSmart tips or visiting The Pensions Regulator's website.

Can you spot the signs of a scam?

Even with additional layers of protection in place, you still need to remain vigilant. Below are the latest warning signs to look out for with pension scammers.

1. How have they contacted you?

   A legitimate company would never contact you out of the blue to either offer a pension review or to sell you a pensions opportunity.

   Cold calling to sell pension products has also been illegal since January 2019. If any company contacts you offering such a review, politely hang up.

2. Be wary of certain investments

   There are some investment types which aren’t regulated under UK law and scammers will entice you into these types of offerings so your money can’t be traced. These types of investments include overseas property and hotels, renewable energy bonds, forestry, parking, and storage units. Look at the Financial Conduct Authority’s (FCA) unregulated investment products list to find a full list of investments which aren’t regulated by them.

   You should also be wary of companies which promise high returns on your investments. High returns are typically seen as 8% a year or more.

3. Pressure selling

   The quickest way for a scammer to get your money is to pressure you into signing paperwork quickly and without giving you time to sit and think about the options provided to you. A scammer could send paperwork to you via a courier who won’t leave until you sign the paperwork, or by telling you about a “once in a lifetime” or “limited time” opportunity. Always take the time to read through any paperwork provided and ask any questions if you are unsure.

   You can move your benefits from VGPS to another registered pension scheme. DB retirement benefits can be very valuable. Moving your benefits is a significant decision which must be considered carefully.

   If your benefits are worth more than £30,000 you are required, by law, to take independent financial advice.

   You can find an Independent Financial Adviser at MoneyHelper.

4. Legal loopholes

   Another big tactic that scammers will use is to tell you they’ve found a “legal loophole” to allow you to access funds before you are 55. Currently, under UK law, you cannot access any of your pension savings before age 55 (rising to age 57 from 2028) unless you are in serious ill health without facing serious tax consequences. Even in these financially uncertain times, when money may be tighter than ever, don’t be tempted by these tactics. You may put your financial future at risk.

How can you protect yourself?

Almost all financial services firms must be authorised by the FCA – if they’re not, it’s probably a scam.

Check the Financial Services Register to see if a firm or individual is authorised or registered with the FCA.

Always access the Register from their website, rather than through links in emails or on the website of a firm offering you an investment.

Check if the firm’s Firm Reference Number and contact details are the same as on the FCA Register.

If there are no contact details on the Register or if the firm claims they’re out of date, call the FCA’s Consumer Helpline on 0800 111 6768.

If you’re dealing with an overseas firm, you should check with the regulator in that country and also check the scam warnings from foreign regulators.

If you’re suspicious, report it

You can report the firm or scam to the FCA on 0800 111 6768 or by using their reporting form.

If you’ve given your bank account details to a firm you think may be operating a scam, tell your bank immediately. If you've agreed to transfer your pension and now suspect a scam, contact WTW straight away. They may be able to stop a transfer that hasn't taken place yet. If a transfer has already taken place, it is highly unlikely that you will be able to get your money back and you may never see it again.

Be wary of future scams

If you’ve already invested in a scam, fraudsters are likely to target you again or sell your details to other criminals. The follow-up scam may be completely separate or related to the previous fraud, such as an offer to get your money back or to buy back the investment after you pay a fee.

Be ScamSmart with your pension. To find out more, visit fca.org.uk/scamsmart