Recent research has revealed that over a third of people would fail to recognise a pension scam.
According to research from the Pensions and Lifetime Savings Association, 35% of the 2,000 survey respondents were not suspicious when contacted by someone persuading them to transfer their pension into a lucrative investment or scheme.
Reflecting the growing sophistication of scamming methods, the figures also revealed that less than half of respondents would question whether correspondence from an adviser who instructed them to take actions not in their best interest could be a scam.
Aiming to crack down on pension scams, the Government recently set out its aim to push through a ban of pension cold calling “as quickly as possible.”
However, James Walsh. Policy lead for Engagement, EU and Regulation at the PLSA questioned the effectiveness of this measure if implemented in isolation.
‘Pension scams come in all shapes and sizes, as scammers become increasingly sophisticated. Whilst the Government’s ban on cold-calling is welcome, it is only part of the solution.’
‘The PLSA is calling on the Government to make urgent progress towards introducing an authorisation regime for pension schemes. That will reassure people that they are only dealing with legitimate providers.’
