Pension scams and the Pensions Pledge

Pension scams have been around for many years and the end of furlough could mean an increase in the number of vulnerable savers being targeted.

6th August 2021

The Pensions Regulator is the UK regulator of work-based pension schemes and they work with trustees, employers, pension specialists and business advisers, giving guidance on what is expected of them.

More than £30 million has been reportedly lost to pension scammers since 2017, according to complaints filed with Action Fraud. Scammers target pension pots big and small, with reported losses ranging from under £1,000 to as much as £500,000 per saver. However, the true scale is likely to be much higher as savers often fail to spot the signs of a scam and don’t know how much is in their pots.

Not every pension scam can be prevented. But the Pensions Regulator is asking trustees, providers and administrators to pledge to do what they can to protect scheme members and follow the principles of the Pension Scams Industry Group (PSIG) Code of Good Practice.

Old Mill act as Scheme Practitioner for over 150 Small Self-Administered Pension Schemes SSAS) and has made the pledge to do all we can to protect our scheme members from pension scams.

Pledging to combat pension scams shows our intent to protect our pension scheme members. It tells them and the pensions industry that we’re committed to stopping scammers in their tracks.

By joining forces with the pensions industry to publicly pledge to combat pension scams as part of the Pensions Regulator’s new campaign we are committed to take action. Our planned action includes:

  • Regularly warn our members about pension scams
  • Encourage our pension members to obtain advice from a financial planner before proceeding with any pension transfers or drawing any benefits
  • Complete additional training to become more familiar with the warning signs of a scam and best practices
  • Increase our existing due diligence measures for pension transfers out of a SSAS
  • Report concerns about a scam to the authorities and communicate this to the scheme member.

If you’re concerned that you may have been subject to a pension scam then please contact your usual adviser in the first instance, or alternatively click here…