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Pensions scams
Anyone can fall victim to pension scams because they can be difficult to spot. In one year, 1 in 17 adults were victims to fraud according to the 2023 Crime Survey for England and Wales.
Scammers are typically articulate, friendly, and knowledgeable. They have websites and other materials that look like those of genuine providers, and the reviews seem believable. They’ll try to persuade you to transfer money to them with promises that they can invest your money with high or guaranteed returns. Your money is then transferred into non-existent schemes, stolen outright, or invested into unusual, high- risk investments.
Combatting pensions scams
We’re committed to helping you identify and protect your pension savings from scams. We follow the Pension Scams Industry Group (PSIG) Code of Good Practice and have taken the Combat Scams Pledge.
If we suspect fraud or scams, we’ll make further checks and ask you to take financial advice. We may refuse your transfer request.
On this page we’ll explain about pension frauds and scams, how to spot them, and ways of avoiding them.
Keeping your pension safe from scammers
Your contributions to the NHS Pension Scheme provide important benefits for you and your family. The Scheme does not have an invested pension fund as per private sector pensions, but as a statutory scheme, when you retire, your benefits are fully guaranteed by the government.
You need to safeguard your pension pot because it’s important to your future comfort when you retire. It’ll be one of your major sources of income. This makes it a target for scammers and other fraudsters who want to use your money for their benefit.
Scammers may also offer you alternative savings schemes that seem better value than continuing with your pension contributions to your NHS Pension. If you’re worried about money and want to use your pension to repay debts, visit the MoneyHelper website for advice and to find a free debt adviser who can help you.
Warning signs of a scam
Contact you are not expecting
Cold calling (where a person is contacted by a company about something they have not expressed an interest in) about pensions is illegal. Scammers now try to reach you through social media using friends and family groups.
Remote access
Be cautious if asked to download software so they can access your device remotely.
Free pension reviews
Professional advice is rarely free, especially if you have no connection with the company.
Access to your pension before age 55
The NHS Pension Scheme allows this if you are retiring due to ill health, or you joined the Pension Scheme before 6 April 2006. In all other cases it could be an ‘unauthorised payment’ which means you could pay tax of up to 55%.
Scams may advertise schemes as ‘pension liberation’ or a ‘pension loan.’
Pressure to act quickly
Offers available for a fixed time only, or pressure to sign documents while a courier or representative waits. Take your time to make all the checks you need.
Guarantees of better returns on savings
Most saving schemes have some form of risk which should be explained clearly. Normally higher rates are paid for riskier investments where you can lose money.
Unusual, high-risk investments
These tend to be overseas, unregulated, and with no consumer protections.
Long term pension investments
It could be several years before you notice anything is wrong, by which time it’ll be too late.
Protect yourself from pension fraud
Reject unexpected offers and be wary of ‘free’ pension reviews
If a company who you’ve not dealt with before contacts you unexpectedly, it’s probably a scam.
Check who you’re dealing with
Anyone offering advice or financial services should be authorised by the Financial Conduct Authority (FCA) to give pension or investment advice. You should also check they’re on the Financial Services Register.
If the firm is not authorised by the FCA then you cannot use the Financial Ombudsman Scheme or the Financial Services Compensation Scheme. This will make it unlikely you can claim if things go wrong.
Beware of ‘cloned’ websites which look like those of legitimate firms and do not use the contact details given. Instead, check the contact details on the FCA register.
You should also use the FCA’s ScamSmart Investment Checker.
Search forums and social media for reviews, complaints, and personal experiences about the firm or the offer.
Check their contact details
You should check they have a dedicated landline number or if only mobile numbers are given. Check if the address is a PO Box or serviced office. If anything seems to be hidden, be cautious.
Do not be rushed or pressured to act
Be wary of deals that sound too good to be true. Take your time to make all the checks you need. Do not be rushed or pressured by time limited deals or actions.
Get impartial information and advice
MoneyHelper is a government service that provides free, independent, and impartial guidance on anything money related. There are sections on pensions and retirement, savings, budgeting, and debt counselling. They can advise on the best options for you.
You can also use an independent financial adviser to help you make the best decision for your circumstances. Visit our useful information webpage for more information about how to choose an adviser.
Stop! Think Fraud campaign
You can also visit the Stop! Think Fraud - How to stay safe from scams government campaign for information on how to remain vigilant to signs of potential fraud.
If you think you've been scammed
If you’ve already instructed NHS Pensions
Contact us immediately by:
Telephone: 0300 330 1346
Email: nhsbsa.pensionsmember@nhsbsa.nhs.uk
Report to the Financial Conduct Authority
Use the online ‘report a scam’ form on the Financial Conduct Authority website.
Telephone: 0800 111 6768 or +44 207 066 1000 from outside UK.
Report to Action Fraud
Make a report online at ActionFraud.
Telephone: 0300 123 2040 or +44 300 123 2040 from outside UK.
Public services pensions remedy (McCloud) - potential for scams
In 2015, the government made changes to most public service pension schemes that were found by the Court of Appeal to be discriminatory to younger members.
The remedy aims to correct this discrimination that could have taken place between 1 April 2015 and 31 March 2022.
We’ll contact affected members with the information needed for any remedial action. This is free of charge, and you’ll not need to go through a third party to make any claims.
You can find more information on our dedicated webpages: The public service pensions remedy – McCloud. Scammers will be looking for new ways to commit fraud. Stay cautious about any offers and look for the signs of a scam to protect yourself from fraud.