New research has revealed that almost one in ten over-55s have been the target of a fraudster since the pension freedoms were launched.
According to Prudential, 9% of this demographic say they have been targeted by a suspected scammer, with offers to transfer or unlock funds being the most common tactics used by fraudsters.
Whilst the risk of being defrauded is cited as a major concern for a third of over-55s, just under half (49%) said they didn’t report their worries as they were unsure who to report the incident to, or were unaware of how to do so.
18% of respondents who had been the targeted actually reported their concerns to the authorities, with 47% stating that the methods used involved offers to access money at an earlier time or to unlock pension funds.
Commenting on the figures was Vince Smith-Hughes. The retirement income expert at Prudential urged the public to be alert to the risk of scams and to be vigilant. He stated: “Pension freedoms, though enormously popular with consumers, have created a potentially lucrative opportunity for fraudsters and people need to be vigilant to safeguard their hard-earned retirement savings.
“If it sounds too good to be true then it usually is and people should be sceptical of investments that are offering unusually high rates of return or which invest in unorthodox products which may be difficult to understand. If in any doubt, seeking independent advice from regulated professional advisers will help ensure they won’t get caught out.
“The Pensions Advisory Service, FCA and The Pensions Regulator are doing good work raising awareness of the risks of scamming and by reporting suspected scams consumers can help the authorities tackle the issue and maintain confidence in pension freedoms.”
