Six stats that show pension freedoms open people up to scams

Seeking advice and reporting scammers will go far in bringing down the risk of being defrauded

Although popular with consumers, the pension freedoms have created a potentially lucrative opportunity for fraudsters.

A recent Prudential survey found that, since the new rules came into effect in April 2015, 9% of over-55s said they have been approached about their pension funds by people they believe to be scammers. And worryingly, 33% of over-55s say the risk of being defrauded of their savings is a major concern following the pension freedoms.

People should bear in mind that if it sounds too good to be true, it usually is. The tactics commonly used to defraud people of their retirement savings include offers to unlock or transfer funds, and the offer of alternative investments.

The public needs to be sceptical of investments that offer unusually high rates of return, or which invest in unorthodox products that may be difficult to understand.

Vince Smith-Hughes is retirement income expert at Prudential.

Although popular with consumers, the pension freedoms have created a potentially lucrative opportunity for fraudsters.

A recent Prudential survey found that, since the new rules came into effect in April 2015, 9% of over-55s said they have been approached about their pension funds by people they believe to be scammers. And worryingly, 33% of over-55s say the risk of being defrauded of their savings is a major concern following the pension freedoms.

People should bear in mind that if it sounds too good to be true, it usually is. The tactics commonly used to defraud people of their retirement savings include offers to unlock or transfer funds, and the offer of alternative investments.

The public needs to be sceptical of investments that offer unusually high rates of return, or which invest in unorthodox products that may be difficult to understand.

Vince Smith-Hughes is retirement income expert at Prudential.

Source: Prudential and ActionFraud

Source: Prudential and ActionFraud

Prudential online survey, 23-25 February 2018, of 1,000 over-55s

Prudential online survey, 23-25 February 2018, of 1,000 over-55s

Prudential online survey, 23-25 February 2018, of 1,000 over-55s

Prudential online survey, 23-25 February 2018, of 1,000 over-55s

Prudential online survey, 23-25 February 2018, of 1,000 over-55s

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