19 August 2026
Pension scams can look surprisingly convincing. You might receive an unexpected call offering a free pension review, be promised better returns or be encouraged to move your pension into an unfamiliar investment.
Knowing the warning signs and taking a few simple steps before transferring any money can help protect your savings.
How do pension scams work?
Pension scams often start with an unexpected approach from someone claiming to be able to improve your pension or help you access your money.
You may be encouraged to transfer your pension into an investment that sounds attractive but is actually high risk or unregulated. Investments can include unusual assets such as overseas property, forestry or businesses you may not be familiar with.
Because these investments are often presented as long-term opportunities, it may take years before someone realises that something has gone wrong.
What are the warning signs of a pension scam?
There are several signs that should make you stop and think.
Be particularly cautious if someone:
Fraudsters may also use professional-looking websites and paperwork to appear legitimate.
A free pension review should be treated with particular caution. The FCA warns that professional pension advice is not free and that some companies offering free reviews are not authorised.
Fraudsters have also been known to impersonate organisations such as the FCA and MoneyHelper. Be careful if someone contacts you unexpectedly, pension cold calling has been banned since 2019, subject to limited exceptions.
If you receive an unexpected call about your pension, the safest approach is to end the call rather than engage with the caller.
You should also be cautious about unexpected emails and text messages. Don't click on links or use contact details provided by someone who has approached you. Pension cold calls can be reported to the Information Commissioner's Office.
Can someone help me access my pension early?
Be extremely cautious if someone offers to release money from your pension before you are normally able to access it.
Pension money can generally be accessed from age 55, although this is due to increase to 57 from 2028. There are some genuine exceptions, including certain circumstances involving ill health, and some people have a protected pension age.
Early access can also have serious tax consequences. You could face a substantial tax bill, while the company arranging the transaction may also charge significant fees.
If someone promises to unlock your pension early, don't agree to anything until you have taken independent advice.
Why might my pension provider stop a transfer?
If your pension provider pauses or refuses a transfer, this may actually be a protection rather than a problem.
Since November 2021, pension schemes have been required to check transfers for certain warning signs associated with scams.
Where a serious warning sign is identified, the transfer may be stopped. In other circumstances, you may be required to take specific guidance before the transfer can continue.
If your provider asks you to attend a guidance appointment, it is important to take this seriously rather than trying to find a way around the checks.
How can I check that a pension adviser is genuine?
Before transferring any pension money, check the firm through the Financial Conduct Authority (FCA).You can use the FCA Financial Services Register or the FCA Firm Checker.
Make sure the firm is authorised for the service it is offering you. Don't simply rely on the website, phone number or email address given to you by the person who contacted you. You can also check the FCA Warning List.
If you are over 50 and have a defined contribution pension, you can also book a free Pension Wise appointment through MoneyHelper.
Don't take advice from the company that contacted you. Carry out your own checks and seek independent advice.
What if I think I've already been scammed?
If you believe you have transferred your pension as part of a scam, act as quickly as possible.
Contact your pension provider or scheme trustees immediately. If the transfer is still in progress, it may be possible to stop it. You should also report the matter to Report Fraud.
Be particularly careful of anyone who subsequently contacts you claiming they can recover your money in return for an upfront payment. This can be another scam targeting people who have already lost money.
Can money lost through a pension scam be recovered?
There is no guarantee that money lost through a pension scam can be recovered, but depending on what happened, there may be options available.
For example, complaints may be possible through the Pensions Ombudsman or, where an FCA-regulated firm was involved, the Financial Ombudsman Service.
Legal action may also be possible in some circumstances, so obtaining advice promptly can be important.
Take your time before making a decision. Perhaps the simplest piece of advice is also one of the most important: Don't be rushed into making a decision about your pension.
If someone tells you that an opportunity is only available for a limited time, promises guaranteed returns or pressures you to transfer your pension immediately, take a step back.
Check who you are dealing with, seek independent advice and make sure you understand exactly what you are being asked to do before signing anything.
How we can help
Pension scams can involve significant sums of money and can be extremely difficult to resolve. If you are concerned about a pension transfer, believe you may have been targeted by a scam or have already lost money, it is important to seek advice as soon as possible.
Our Wills, Probate & Estate Administration team can provide advice where pension assets form part of wider estate or financial planning, while our Power of Attorney team can also advise on putting arrangements in place to help protect your financial affairs if you become unable to manage them yourself.
If you have already been affected by a scam, we can advise you on the legal options that may be available to you and whether further action should be considered.
Don't be embarrassed about asking for help. Scams can be sophisticated and anyone can be targeted. Call us on 01202 294411 or contact us through our website to arrange a confidential consultation: Contact Us AB Solicitors For Your Legal Needs
