The 2015 amendments in pension legislation have made it considerably easier for your clients to get their hands on their hard-earned pension.
Official figures published in January show that a total of 1.5m people have drawn £9.2bn from their pension savings under the new rules. These changes haven’t just made it easier for your clients to get their hands on a nest egg though….
Some 8.4 million people are estimated to have received unsolicited offers of advice or a review in the last year - the risks of which include the provision of 'free services' in a bid to gather information or authority to transfer a pension.
Such offers act as a lead for subsequent pension investment scams.
'Advice' is most commonly offered to those aged 55 to 64 and a 'review' to those aged 45 to 54, with many scammers using professional-looking websites and marketing material to fool their victims into signing up to free pensions advice, or cold calling with offers of unusually high investment returns.
It makes it very difficult for consumers to stay ahead of pension scams as they evolve, but there is support out there.
The Combating Pensions Scam's Code of Good Practice provides excellent guidance on how to identify a scam and protect your clients. Included in this pack is a scheme transfer checklist, which you can complete to help determine whether or not a scheme is genuine, along with tips around undertaking due diligence against a pension scheme.The Pension Regulator also provides detailed support tools for you and your clients including this useful pension scams action pack.
Nucleus has produce its own support to help you in the fight against fraud. Click on the below to download.