TL;DR
The government and The Pensions Regulator have announced a crackdown on pension scams, warning savers to check any unsolicited pension contact against the FCA register before taking action. Pension scams cost victims an average of £50,000 and often target people approaching retirement who are considering transfers or accessing their pension pot.
Last reviewed: June 2026 | Sources: TPR, FCA, GOV.UK
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Pensions Pension Scam Warning: Key Facts Average victim loss: £50,000Common trigger: unsolicited contact about your pensionCheck firm on: FCA registerReport scams to: Action Fraud 0300 123 2040Regulator: TPR / FCA |
What the crackdown involves
The Pensions Regulator and the government have issued renewed guidance warning pension savers to be vigilant against fraudsters who use sophisticated tactics to convince people to transfer their pension into fraudulent schemes. The crackdown involves increased coordination between TPR, the FCA and Action Fraud to identify and shut down scam operations.
Pension scams typically involve cold calls, unsolicited texts or emails offering free pension reviews, unusually high investment returns, or early access to pension funds. Under current rules, unsolicited cold calling about pensions has been banned since January 2019. Any unsolicited contact about a pension is therefore a scam warning sign regardless of how legitimate the caller appears.
How pension scams work
The transfer trap. Scammers pressure victims into transferring their pension pot into a fraudulent investment scheme, often promising returns of 8 to 12 percent per year. The funds are then stolen or invested in illiquid assets that cannot be realised. Victims also face a 55 percent HMRC unauthorised payment charge on the transferred funds in addition to losing the capital.
The free review approach. Scammers offer a free pension review, often appearing professional with websites, branded materials and claims of FCA regulation. The review concludes that a transfer is in the victim's best interest. The firm either does not exist on the FCA register or uses a cloned identity of a legitimate firm.
Exotic investment schemes. Victims are persuaded to transfer into overseas property, carbon credits, storage units or other unusual investments that are unregulated and illiquid. These schemes are frequently total losses.
Who is most at risk
People aged 50 to 65 who are approaching retirement and considering their pension options are the most common targets. People who have recently experienced redundancy, divorce or other financial change are also frequently targeted as they may be more willing to consider pension access or transfer options.
Self-employed people and those with multiple pension pots from different employers are targeted because they may have less familiarity with their pension arrangements and may not have an existing relationship with a financial adviser.
How to check if a firm is legitimate
Any firm providing pension advice or accepting pension transfers must be authorised by the FCA. Check the firm's name and registration number on the FCA Financial Services Register at register.fca.org.uk before transferring any funds or providing any personal information. Be aware of clone firm fraud, where scammers use the name and registration number of a legitimate firm but different contact details.
Legitimate pension advisers will never cold call you about your pension. They will not pressure you to make a quick decision. They will provide their FCA registration number without hesitation and encourage you to verify it independently.
What to do if you have been approached
Do not transfer any pension funds. Do not provide personal or financial information. Check the firm on the FCA register. Report the contact to Action Fraud on 0300 123 2040 and to the FCA via the FCA's ScamSmart reporting tool. If a transfer has already been initiated, contact your pension scheme administrator immediately to halt the transfer if possible.
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Disclaimer If you have been the victim of a pension scam, contact Action Fraud immediately on 0300 123 2040. Kael Tripton Ltd is an independent editorial publisher and is not regulated by the FCA or TPR. |
Frequently asked questions
Is cold calling about pensions legal?
No. Unsolicited cold calling about pensions has been banned in the UK since January 2019. Any cold call about your pension, regardless of who the caller claims to be, should be treated as a scam. Hang up and report the number to the Information Commissioner's Office.
What is a pension liberation scheme?
A pension liberation scheme is a fraudulent arrangement that claims to allow early access to pension funds before the minimum access age of 55. All such schemes are illegal. Anyone who transfers funds through a pension liberation scheme faces a 55 percent HMRC unauthorised payment charge in addition to losing the transferred funds.
How do I report a pension scam?
Report to Action Fraud on 0300 123 2040 or at actionfraud.police.uk. Also report to the FCA via fca.org.uk/scamsmart. If your pension provider is involved, contact The Pensions Ombudsman. Report cold calls about pensions to the Information Commissioner's Office.
Can I get my money back if I have been scammed?
Recovery of pension scam losses is very difficult. The FSCS may provide compensation if an FCA-authorised firm provided unsuitable advice. Where funds have been transferred to an unregulated scheme, recovery is typically minimal. Act immediately if you suspect a scam is underway to maximise the chance of halting a transfer.
What is the ScamSmart campaign?
ScamSmart is a joint FCA and TPR campaign to raise awareness of pension and investment scams. It provides tools to check investments and advisers, and a reporting mechanism for suspected scams. The website is at fca.org.uk/scamsmart.
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Sources GOV.UK: Pension Scam Warning |
