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.
XPS Pension Group says 64% of the cases it monitors now carry at least one red flag. These are warning signs of a potential scam, such as the adviser working with the member not having proper regulatory clearance.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

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.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.
-
8 of the best converted properties for sale now
The best converted properties for sale – from an apartment in the former Hartley’s Jam factory on London’s Southbank, to a converted 18th-century mill in Itteringham, Norfolk
-
How taking a two-year career break could leave a £26k hole in your pension
Career breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
-
Flex first, fix later: a hybrid retirement strategy to consider
You needn’t choose between income drawdown and an annuity in retirement. What is a “flex first, fix later” approach?
-
A new wealth tax is a terrible idea. The rich are already being hit by sneaky taxes – Merryn Somerset Webb
Opinion Ideologues want to squeeze more tax out of the rich with a wealth tax. They’re already wrung dry, says Merryn Somerset Webb
-
Has your pension plunged in stock market turmoil? How to avoid creating real shortfalls
Sliding stock markets are no reason to sell out of your pension in a panic, says David Prosser
-
Pensions revolution: how to profit from the trends shaping the UK pension system
The UK pension system is one of the biggest in the world. Big changes are under way, says Rupert Hargreaves
-
What MoneyWeek writers read and watched in 2024
Here's a roundup of MoneyWeek's favourite books, films and TV shows in 2024
-
Parents face £1,000 'nanny tax' – how to afford it
Hiring a nanny is about to become even more of an expensive hassle for families, especially those in London. Here's how to cut costs
-
Is it cheaper to be a sole trader?
It might be cheaper to be a sole trader due to changes to the tax system
-
Should you switch your pension fund?
Many pension fund options are poor performers, thanks partly to high charges. Is it worth switching?