Pension scams are still a very real threat in 2026. With technology becoming more sophisticated, it’s becoming even easier for scammers to fool people out of their life savings!
This really makes us angry, you save your whole life, and some low-life scumbag convinces you to give your money away. Sounds like fantasy, but the FCA estimates up to 40% of pension transfers are linked to either fraud or unregulated and unsuitable solutions! We have at least 4 clients who have been ripped off in the past!!
Why Pension Scams Are on the Rise
Modern scams are getting more sophisticated. AI-generated messages, fake phone calls, and convincing emails make it harder to spot fraudsters. Scammers often promise early access to pension funds or high returns or claim to have “exclusive” investment opportunities.
Common Red Flags to Watch Out For
Here are some simple ways to help spot a scam:
- With the clampdown on marketing and cold-calling, chances are anyone phoning you that you are not expecting is a shark – put the phone down! This goes for unsolicited texts also!
- Scammers will explain that you can take money out before the age of 55. . In almost all legitimate cases, this isn’t possible.
- Offering exotic investments including overseas property, hotels or golf courses. If it sounds too good to be true, it generally is!
- When they use words like “liberation”, “loophole”, “overseas”, “ethical”, “new industry” or “loan”.
- When paperwork is couriered to you, asking you to act immediately – this should ring alarm bells.
If in doubt – DO NOT DO IT! Seek a 2nd opinion and contact your local independent financial advisers immediately to get quality advice from experts you can trust!
Real-Life Examples of Pension Scams
Over the past few years, we have had at least 4 clients who have been ripped off!
One client was approached with an offer to invest in overseas property. They were promised their pension would be invested in a new hotel and golf course that was near completion. In return, they would receive regular income (via dividends) and appreciation as the complex would “rocket” in value upon completion.
They were provided with glossy brochures and links to a website and, given that they actually knew the individual personally, had a face-to-face meeting in what appeared to be a professional office, so they decided to go ahead and transfer their pensions across. The result – they lost around £49,000 of their hard-earned pensions!
If you type “Harlequin Property Scam” into a search engine, the scam was worth around £226 million! Given that the scheme was “unregulated”, no compensation was able to be recovered.
Stories like this highlight why independent, no-nonsense advice is crucial.
Steps to Protect Yourself
Protecting your pension doesn’t have to be complicated. Here’s how you can stay safe:
- Always check on the FCA register https://register.fca.org.uk/s/, ensuring any adviser or company you are dealing with is regulated.
- Remember, if it sounds too good to be true, it usually is!
- Make sure that your adviser is qualified through a recognised institution such as the www.cii.co.uk or https://www.thepfs.org/,
- If in doubt – phone Financial Fortress for free
How Financial Fortress Can Help
At Financial Fortress, we put your interests first. We provide:
- Free Initial Consultation: No pressure, just clear guidance.
- Second Opinions: Already received advice elsewhere? We’ll help you ensure it’s right.
- Jargon-Free Advice: We explain everything in plain English so you can make informed decisions.
Your retirement savings are too important to leave to chance. With expert guidance and careful checks, you can enjoy peace of mind knowing your future is secure.
