People over the age of 50 in the UK have become the target of fraudsters trying to steal their pension savings.
Con artists are using phone, post and email to contact pensioners with their offer of “help” to access their pension savings early. They often say they can use a legal loophole to do this or that they can provide a one-off investment opportunity.
Data compiled by YouGov revealed that 17% of people over 60 and 20% of those over 55 had been approached by pension swindlers.
Since the recent change in pension regulations, such scams were always a risk. Police believe this type of crime will continue to grow, especially as there is still a good deal of confusion over the regulations which criminals can exploit.
Since the beginning of April, anyone over the age of 55 can cash in all or part of their pension funds or leave it invested. The tax-free amount is 25% of the pot, with the remaining 75% taxed.
Retirement Advantage, which conducted the research, warned retirees to be on their guard.
Approaches are likely to include help to access pension savings, a recommendation to receive a large lump sum to invest (this attracts a large tax bill so it becomes a double hit on the victim), and pressure to act quickly.
Scamsters often also recommend that there is no need to seek professional financial advice or look at the government’s free Pension Wise website. They are unlikely to appear on the Financial Conduct Authority Register which lists all the regulated firms and individuals in the financial services industry
Earlier information indicated that fraudsters had already made off with just over £23 million from both old and young people in Britain using the well-publicised scam of simply asking them to transfer their money in the bank into accounts held by the thieves.