WEALTH at work’s survey* with the Pensions Management Institute (PMI) has revealed that 92% of Trustees fear their members approaching retirement will be targeted by scammers.
Jonathan Watts-Lay, Director, WEALTH at work, a leading financial wellbeing and retirement specialist, comments; “Pension scams are a persistent problem which have a devastating impact on those who become victims. The strain on household finances caused by the cost of living crisis could mean that some members are more vulnerable than ever this year. With almost a quarter (22%) of UK adults having reported being approached by scammers offering free pension advice or a free pension review, investment opportunities, or a tax refund between March and May this year, it’s clear that these fears are well founded. Our research shows that Trustees are well aware of this situation and have grave concerns for their pension scheme members.”
He adds; “People getting scammed out of their hard-earned pension savings is a problem that has been around for some time and not likely to go away any time soon. Unfortunately, the exact number of those who are scammed is likely to be higher than the official figures. It is thought that scams often go unreported and individuals may not even realise they have been scammed for some time after it occurs.”
Watts-Lay explains; “Defined benefit (DB) pension transfers are a particular area of concern, and the XPS Pension Group has reported an all-time high in July of 97% of transfer cases as having one or more scam warning sign. Indeed, the majority (86%) of Trustees in our survey* have concerns over this. It’s unclear yet if the measures put in place to enable Trustees and Scheme Managers to block or pause suspicious transfers have helped the situation.”
He comments; “The Pensions Regulator (TPR) has recently launched its new scam fighting strategy in light of concerns that the cost-of-living crisis may leave savers more vulnerable to scammers. The strategy will build on TPR’s pledge to combat pension scams campaign which includes providing regular scam warnings, encouraging members considering cash drawdown to access guidance services, to carrying out checks and provide warnings on high-risk transfers.”