Will A Ban On Cold-calling Prevent Pension Fraud?

Designed to provide a 'nest egg' to help you enjoy retirement free from financial worries, private pension schemes are an extremely popular way of saving money over a long period of time.

What would you do then, if you found out that you had lost all your pension monies to a pension scammer? I mention this because pensions have become an attractive target for fraudsters due to the size of individual pension pots and the fact that most people generally don’t engage with their savings until much later in life. Citizens Advice has reported that over 10.9 million people in the UK have been contacted by pension scammers since 2015, with the average person losing up to £15,000 from their savings.

Research shows that the most common method used to initiate pension fraud is cold-calling, with people aged 65 and over being targeted most regularly. In an attempt to combat this problem, the Government has proposed a ban on cold-calling, including text messages and emails, as well as a tightening of HMRC rules to ensure that only genuine companies, which produce regular and up-to-date accounts, can register pension schemes. But with no set date for when the new legislation will be put in place, will this be enough to put an end to pension scams for good? Speaking with an FCA regulated independent financial adviser, face to face, can help to provide you with absolute certainty that your pension funds will be invested wisely and will not be misappropriated into some sort of scam. With 40 years’ experience in financial planning, Explore Wealth Management’s team of professional advisers are experts in retirement planning and investment management.