With freedom comes increased opportunity. But unfortunately opportunity doesn't distinguish between it being used to cause better outcomes and being used to cause harm.
Since the increased freedom and choice in pensions was introduced in April 2015, there has been a huge increase in pension scammers, trying to persuade pension members to part with their hard earned capital to invest in 'get richer quicker' scams.
This report estimates that there are 8 scam calls every second to UK residents leading to an estimated annual loss for member's pensions of £19m.
Before making any decisions when taking a pension, it is vital that members understand their choices and know where to go to find suitable investment opportunities that will sustain them throughout their retirement. Financial education via retirement seminars and access to financial advice will enable people to make better informed choices and would help them to spot and ignore such scams.
Cold calls offering exotic investment opportunities to people cashing in their pension pots will be banned under government plans. Ministers estimate eight scam calls are made every second to UK residents, leading to an annual loss of £19m.