Is your retirement in jeopardy? Britain’s pension savings are in jeopardy.
PENSION SCAMMERS prey on unsuspecting retirees, stealing their hard-earned money.
The average amount stolen has risen to £50,000 in the last year, prompting warnings to retirees about the increased risk and how to avoid losing their money and becoming a victim.
Because people could withdraw all of their money from their pensions in one go after the Pension Freedoms Act in 2015, scammers began targeting vulnerable pensioners. Action Fraud reported a doubling of the average amount lost by pension scam victims in 2021 to £50,000 from around £23,689 in 2020, with the Pension Scams Industry Group (PSIG) estimating 40,000 people lost around £10 billion to fraudst.
Becky O’Connor, head of pensions and savings, spoke with James Jones-Tinsley, technical specialist at pensions consultants Barnett Waddingham, on the interactive investor Youtube Channel about the rise in pension scams and how Britons can avoid them.
Thousands of retirees have been scammed and have lost their entire life savings, forcing them to struggle during their golden years.
“Millions of pounds have been lost to scammers, and the figures are likely to be much higher than official statistics because people are embarrassed to admit they have been victims,” Mr Jones-Tinsley said.
He explained that the promise of higher returns appears to be luring people in.
“The biggest scams appear to include domestic investments,” he said.
“Things like car parking spaces, which are most commonly found at airports or store pods.
“This is where people rent out space in a building or a unit to store their belongings.
“People have been encouraged, typically by unregulated bodies or individuals, to invest their entire pension savings in these with the promise of high returns, and unfortunately, many of them have failed.”
“As a result of that, people have lost their pension savings.”
The majority of scammers call their victims at random, posing as financial advisors and offering a free review of their pension plan.
“The problem is that they are so good at working their way into a conversation that it is often impossible to let it die and ring off,” he explained.
A sense of urgency, according to Ms. O’Connor, is something else that retirees should be on the lookout for.
“I’ve heard stories about people saying we have to get this done quickly or we’ll miss the deadline,” Mr Jones-Tinsley replied.
“News from the Brinkwire.”