How to spot and avoid pension scams
Your pension may be one of your biggest financial assets so don’t let it fall into the wrong hands. Learn how pension scams work, what warning signs to look for, and what to do if you’re worried.
Scam alert
⚠ Investment scams using social media and WhatsApp are on the rise. Learn how to protect yourself from investment scams.
Stay informed. Beat the statistics.
Report Fraud, the UK’s national reporting centre for fraud and cyber crime, reported that around £17.6 million of pension savings was accessed fraudulently in 2024. With average losses of around £34,000 per person.
What is a pension scam?
Pension scams target pension savers by convincing them to transfer or access their savings under false pretences.
They may promise attractive investment opportunities or early pension access. But, these offers are often high-risk, non-existent, or come with hidden fees that can significantly reduce retirement savings and can have serious tax implications.
Pension scams can cause long-term damage because the losses may not be discovered until much later.
Common types of pension scams
Our pledge to combat pension scams
We’re committed to securing your pension savings and are working with the industry in the fight to stop the scammers.
Review scams
Scammers will offer free, professional, pension reviews claiming to improve the pension’s performance. Their real aim is to gather information about your pension and convince you to transfer it into a high-risk or even non-existent scheme.
Any information they collect could also be used in other scams.
They often use tactics similar to impersonation and investment scams. They may pretend to be from a legitimate pension provider or trusted service like MoneyHelper, and use “exclusive” or “time-sensitive” offers to pressure people into acting quickly.
Look out for these warning signs →
Unsolicited contact
Cold calling about pensions is illegal, so be cautious of unsolicited calls, emails, or messages from anyone you don't already know or can't verify.
High pressure tactics
They push you to make a quick decision or act on a short-term opportunity. Pension rules are there to make sure you’re given the information and time you need to understand your options before making important decisions. A legitimate firm should give you time to consider your choices and won’t pressure you to act quickly.
Unrealistic returns
Claims of better returns on pension savings or getting you more than the usual 25% of your pension tax-free. UK pension tax rules limit how much you can normally take tax-free, and accessing pension money outside these rules can result in significant tax charges.
Liberation scams
Scammers will offer you ways to access your pension pot before the normal retirement age of 55 (or 57 from 2028). These offers are often referred to as “pension liberation” or “pension loans”.
Victims of this offer will have their pensions transferred into a scheme controlled by the scammer. They often charge extremely high fees and may not make payment to the pension member at all. If they do release the funds, the member could be issued with a hefty “Unauthorised Payment” charge from HMRC. These charges are at least 55% and can be as high as 70% of the pension pot.
Look out for these warning signs →
Claims of early access
They say they can help you access your pension early. You can usually only access your pension from age 55, rising to 57 from April 2028, unless an exception applies. Accessing it outside of these rules could leave you with a hefty tax charge.
Common terms
Scammers use terms like 'pension liberation', 'loan', 'loophole', 'savings advance', 'cashback'.
High fees
These services often charge a percentage of the pension pot as a commission.
How can Pension Wise help?
If you’re thinking about retiring soon and want to understand your options, make sure you speak to someone at Pension Wise.
Pension Wise is part of the government’s Money Helper service, offering free and impartial pension guidance to the over-50s. They can also help you decide if transferring your pension is the right choice for you.
Cold calling about pensions is illegal
Since 2019 it’s been illegal to cold call anyone in relation to their pension savings, this includes emails and messages. If you’re contacted out the blue about your pension by someone you don’t have a prior relationship with, you should report it to the Information Commissioner’s Office via their website or on 0303 123 1113.
How to spot and avoid a pension scam
It pays to be prepared, keep these things in mind when something doesn’t seem right.
Signs of a pension scam
Unexpected calls or messages: Cold calls about your pension are illegal and likely a scam.
Altered website or contact details: Scammers can clone websites of legitimate organisations, they will use slightly altered but similar URLs or contact details.
Early pension access: Usually you can only take money from your pension at 55 (or 57 from 2028) unless you have a protected retirement age or are in poor health.
Free pension reviews: Professional financial advice on pensions is not free. Many who offer free pension reviews are not authorised by the Financial Conduct Authority (FCA) even if they say they are.
Exaggerated claims: Unrealistic guarantees of higher returns, higher interest rates, or increased tax-free benefits.
Pressure to act now: You’re being pressured to act now for something they claim is time-sensitive.
Complex structure: Scammers will use complicated structures to cause confusion, regulated pension providers are required to clearly display the charges and key features and risks of their products and get confirmation that you understand what you’re paying for.
Fixed-term investments: These investments are often unregulated. Sold as a long-term investment, your money will be locked away for a set period so you may not realise that your money is missing for years.
How to protect yourself
Keep your personal information private: The more the scammers know about you, the easier it is for them to build trust and manipulate you or scam those close to you. Only share personal information to organisations you can verify and are expecting to be contacted by.
Take a beat: Scammers will create a sense of urgency to rush your decision, so give yourself time to think. Don’t give into the pressure, you can always hang up.
Do your own research: by using official sources like, company reports, market updates and stockbrokers. Learn how to research stock and shares.
Choose regulated adviser and pension provider: that are designed to protect investors. If you deal with an unauthorised firm, you won’t be covered by the Financial Ombudsman Service if you want to complain.
Check the FCA Register: (updated on average every 24 hours) to make sure you’re dealing with an authorised firm and the contact details match exactly.
Check the FCA Warning List: to find details of unauthorised firms and individuals that aren’t allowed to operate in the UK.
Get a second opinion: never feel pressured to keep quiet, especially if you’re suspicious. Speak to someone you trust.
Keep an eye on your pension: it’s easy to forget about long-term investments, taking the time to review it regularly can help you understand if the arrangement still works for you. If anything doesn’t make sense, check with your provider.
What to do if you suspect a pension scam
Here are the steps you should take when you suspect a scam:
- Stop engaging.
- Check if you have a relationship with the contact. Unsolicited cold calls are illegal so are likely fraudulent.
- Check if the firm is authorised by the Financial Conduct Authority (FCA) using their Firm Checker tool or call them on 0800 111 6768.
- Seek impartial advice.
- Contact us if your ii account is involved.
Report the scam
If you have any concern that you’re being scammed, report it right away.
Gather as much information as you can about the scam, such as contact details and the nature of the contact and let us know.
Report the scam to the police through Report Fraud. You can call them on 0300 123 2040. In Scotland, call 101.
You should also report the scam to the FCA on 0800 111 6768 or use their contact form to get in touch.
We pledge to combat pension scams
The Pensions Regulator (TRP) launched a campaign calling on the pensions industry to do more to protect scheme members from scammers. ii proudly supports this campaign and we’ve taken the pledge to commit to the principles.
We commit to:
- Warn customers about pension scams regularly
- Raise awareness of pension scams when customers access or transfer their pension and strongly
- Promote trusted guidance and support services
- Train relevant teams to recognise the warning signs of scams
- Study and use the guidance from the Financial Conduct Authority (FCA), The Pension Regulator and the PSIG Code of Best Practice
- A continued membership of PSIG's Pension Scams Industry Forum.
- Report suspected scams to the appropriate authorities and communicate this to the scheme member
How we put this into practice:
- Regularly review the relevant teams and trustees to complete the pension scams module in the Trustee toolkit
- We stay up to date with scam guidance from FCA, TPR and the Pension Scams Industry Group (PSIG)
- Our transfer processes include extra checks for scam risks
- We actively report scam concerns to the authorities
- We communicate clearly with customers if we identify concerns
- We are a member of and regularly attend the Pension Scams Industry Forum
- We regularly warn our customers about pension scams when they are accessing or transferring their pension
More support to help you stay safe
Citizens advice
Think you’re being scammed? Citizens Advice offers an online tool to help you check if it’s is a scam. They can also give you advice on what to do next.
Take Five To Stop Fraud
Take Five to Stop Fraud offers straight-forward advice to help everyone in the UK protect themselves against financial fraud.
FCA Firm Checker
It’s hard to know if an investment or pension opportunity is legitimate. You can use the FCA Firm Checker to find out if the firm or person you’re dealing with is authorised.
Get Safe Online
Want to get on top of online safety? Get Safe Online is the UK’s leading internet safety website who provides unbiased, factual and easy-to-understand information about online safety.
Worried about a scam or suspicious contact?
If you’re worried your account may be compromised, let us know straight away. If you think you’ve been scammed, report it to Report Fraud on 0300 123 2040 or on their website.