NEWS | PENSIONS
TL;DR
The government announced new pension scam protections on 9 June 2026 under the Pension Schemes Act 2026. Pension transfer rules are being strengthened to make it harder for fraudsters to move people's savings out of legitimate schemes. Anyone being pressured to transfer a pension or offered unexpectedly high returns should treat it as a scam warning sign.
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Key Facts
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Why pension scams are a priority in 2026
Pension fraud is among the most devastating forms of financial crime because victims typically lose retirement savings built over decades. The average loss per victim reported to Action Fraud is in the tens of thousands of pounds, and in many cases the entire pension pot. Unlike most fraud, pension losses are particularly difficult to recover because the money is typically moved offshore through complex investment structures before victims become aware.
Fraudsters have become increasingly sophisticated in targeting pension savers, particularly those who have accessed pension freedoms since 2015 and hold defined contribution pension pots. Common tactics include impersonating legitimate pension providers, offering to review or consolidate pensions for free, and presenting high-return investments in overseas property, renewable energy, storage units or other unusual assets.
What the new protections do
The Pension Schemes Act 2026 introduced strengthened transfer rules that give pension scheme trustees greater powers to flag and delay suspicious transfer requests. Under the new framework, trustees can pause a transfer and require members to take guidance from MoneyHelper before proceeding if specific red flag criteria are met.
The red flags include: the receiving scheme is not a recognised or authorised pension scheme; the member has received unsolicited contact about their pension; the member is being asked to transfer quickly; the receiving scheme involves unusual investment types; or there are signs the member is being influenced by a third party acting for financial gain.
Where amber flags are present (less severe concerns), trustees must require members to seek guidance from MoneyHelper's Pension Wise service before the transfer can proceed. Where red flags are present, trustees can refuse the transfer entirely.
The ScamSmart warning signs
| Warning sign | What it looks like |
|---|---|
| Unsolicited contact | Cold call, text, email or social media message about your pension |
| Pressure to act fast | Limited time offer, urgency, threats of missing out |
| Unusually high returns | Guaranteed returns of 8%, 10% or more per year |
| Unusual investments | Overseas property, carbon credits, storage pods, cryptocurrency, forestry |
| Free pension review | Offer to review or consolidate your pension at no charge |
| Upfront fees | Requests for money to access your own pension or investment returns |
| Complexity and secrecy | Reluctance to provide documentation, asks you not to tell family |
| Transfer to unknown scheme | Asked to move pension to a scheme you have not researched |
How to check if a pension transfer is legitimate
Before agreeing to any pension transfer, check the receiving scheme on The Pensions Regulator's list of authorised pension schemes. Check the FCA Financial Services Register to confirm any adviser or firm is regulated. Use the FCA's ScamSmart tool at fca.org.uk/scamsmart to check whether a firm has been flagged as suspicious.
Cold calling about pensions has been illegal since January 2019. If you receive an unsolicited call about your pension, you are already dealing with an illegal approach. Do not engage - hang up and report it to the Information Commissioner's Office (ICO) at 0303 123 1113.
What to do if you think you have been targeted
If you believe you have been approached by a pension scammer or have already transferred money as a result of fraud, contact Action Fraud immediately on 0300 123 2040 or at actionfraud.police.uk. Also report to the FCA's consumer helpline on 0800 111 6768.
If a transfer has already taken place, contact your original pension provider to ask them to investigate. Contact the Financial Services Compensation Scheme (FSCS) if a regulated firm was involved and has failed. The FSCS can protect eligible investments up to £85,000 per authorised firm.
Free and impartial guidance is available from MoneyHelper's Pension Wise service for anyone aged 50 or over considering accessing or transferring a pension. Appointments are free and can be booked at moneyhelper.org.uk.
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Disclaimer: This article is for general information only and does not constitute financial, legal or employment advice. Kaeltripton.com is an independent editorial publisher and is not regulated by the FCA or TPR. Always verify information at primary sources and consult a qualified adviser before making decisions. |
Frequently asked questions
Can my pension provider refuse to transfer my pension?
Under the strengthened transfer rules, yes - trustees can refuse a transfer if red flag criteria are present. This is a protection for members, not a barrier. If you believe a refusal is incorrect, contact the Pensions Ombudsman, which handles disputes about pension administration, free of charge.
How do I check if a pension scheme is legitimate?
Check The Pensions Regulator's register at tpr.gov.uk, the FCA Financial Services Register at register.fca.org.uk, and use the ScamSmart check at fca.org.uk/scamsmart. Any legitimate scheme should be searchable on at least one of these registers.
Is pension cold calling illegal?
Yes. Cold calling about pensions has been illegal since January 2019. This covers unsolicited calls, texts and online messages. Report them to the ICO.
Where can I get free pension guidance?
MoneyHelper's Pension Wise service offers free, impartial guidance appointments for anyone aged 50 or over considering taking or transferring pension benefits. Book at MoneyHelper - Pension Wise.
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Primary Sources |
