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.

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David Prosser
Business Columnist

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.