Scammers target pension transfers
People who apply to transfer their defined-benefit pension to another pension provider need to be on their guard against a proliferation of scammers.
Almost two-thirds of cases in which members of a defined-benefit pension scheme apply to transfer their benefits to another pension provider show evidence that the member may have been a victim of a scam, a leading pension consultant has warned.
Large volumes of defined-benefit scheme members continue to apply for transfers, despite guidance from regulators that such switches rarely make good financial sense.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
When XPS first launched its Red Flag index two years ago, fewer than a third of transfer requests raised alerts. After slipping to 25% in the autumn of 2019, the index began to climb steadily to the latest record high.
The consultant warned that the near-doubling of suspicious activity over the past two years may suggest that scammers are deliberately targeting vulnerable savers in need of access to cash amid the Covid-19 crisis.
Regulators are also warning of a broader increase in pension scams, with fraudsters capitalising on the crisis to target savers with every type of pension plan.
-
What do rising oil prices mean for you?As conflict in the Middle East sparks an increase in the price of oil, will you see petrol and energy bills go up?
-
Rachel Reeves's Spring Statement – live analysis and commentaryChancellor Rachel Reeves will deliver her Spring Statement on 3 March. What can we expect in the speech?
-
Financial education: how to teach your children about moneyFinancial education was added to the national curriculum more than a decade ago, but it doesn’t seem to have done much good. It’s time to take back control
-
Rachel Reeves 'should hand back the cash' from bumper tax haulOpinion Chancellor Rachel Reeves is cheering higher-than-expected tax receipts. But where has the money come from?
-
Why annuities are back in fashion for retireesThe appeal of annuities has been boosted by higher interest rates. So should you buy an annuity with part of your pension savings?
-
Default pension funds: what’s in your workplace pension?Default pension funds will often not be the best option for young savers or experienced investors
-
Plan 2 student loans: a tax on aspiration?The Plan 2 student loan system is not only unfair, but introduces perverse incentives that act as a brake on growth and productivity. Change is overdue, says Simon Wilson
-
Why it might be time to switch your pension strategyYour pension strategy may need tweaking – with many pension experts now arguing that 75 should be the pivotal age in your retirement planning.
-
Rachel Reeves is rediscovering the Laffer curveOpinion If you keep raising taxes, at some point, you start to bring in less revenue. Rachel Reeves has shown the way, says Matthew Lynn
-
ISA reforms will destroy the last relic of the Thatcher eraOpinion With the ISA under attack, the Labour government has now started to destroy the last relic of the Thatcher era, returning the economy to the dysfunctional 1970s
