Last month, the Government announced that the pension cold calling ban would be delayed until later this year.
It is now anticipated that the Treasury will make an official statement at the end of this month, with a further consultation to follow. However, while the ban is expected to come into force in autumn, there are concerns that further debate and discussion could push this back even further.
The news has led to criticism from campaigners. Commenting on the continued delay, Tom Selby, a senior analyst at AJ Bell said: “Too many savers have already been fleeced out of their hard-earned retirement pots by scammers, with cold-calling one of the main tactics employed. The glacial pace of Government action on this is frankly shameful and increases the risk of millions of savers being targeted using this method.”
Steve Webb director of policy at Royal London added: “With every passing day yet more people are being scammed after a process which started with a cold call. We don’t want a statement from the government telling us how difficult it is – we want action and action now”.
While we all hope the ban is introduced as a matter of urgency, in the meantime, to help individuals avoid losing their pension to scams and fraudsters, there are some simple steps that can be followed. These include:
- Check that a company is registered with the Financial Conduct Authority (FCA). If the regulator hasn’t heard of it, you will have no place to go if it turns out to be fake
- Be aware that legitimate pension companies are very unlikely to cold call
- Realise that just because people know information about you, doesn’t make them genuine. It is too easy to find information using Google and social media
- Understand that modern scammers often look legitimate with professional-looking websites and literature
- If you are in any doubt, or even just to be 100% sure, check with The Pensions Advisory Service (TPAS) or Pension Wise
- If the cold call relates to a work-based pension, check with your employer
- If it sounds too good to be true, it probably is
- Pensions can’t usually be released before you turn 55. If someone promises to release your pension early, it is almost always a scam
- Genuine advisors will never force you to make an immediate decision. Be careful not to fall for limited offers and always check with the FCA
- Do not provide personal information to cold callers
- Contact your phone company to block nuisance calls and texts
- Be careful what you share on social media and check your privacy settings are as secure as possible.
If you think you are being scammed, contact TPAS immediately; even if you didn’t fall for the scam they can make sure others don’t become victims.
