The UK pension industry watchdogs are working together to urge savers to keep calm and not rush to make any decisions about their retirement pots in response to the covid-19 pandemic.
The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA), supported by the Money and Pensions Service (MaPS), said fears over the impact of the pandemic on markets and personal finances may make savers more vulnerable to scams or making a decision that could damage their long-term interests.
They are urging savers to take their time and visit the Pensions Advisory Service website for free guidance before making any decisions about their retirement savings.
Also, the institutions are telling people to go to the ScamSmart website to learn how to protect themselves from pensions scams. This includes people already retired who are thinking again about their options.
Too good to be true
This awareness campaign comes after International Adviser had reported that coronavirus-related scams had hit nearly £1m.
Mark Steward, FCA’s executive director of enforcement and market oversight said: “Fraudsters will exploit the coronavirus to prey on anxiety and fear of savers and investors, especially those who may be vulnerable.
“That’s why we’re urging anyone who is thinking about transferring their pension to check who they are dealing with and only use firms authorised by the FCA.
“Reject all unexpected and unsolicited offers; get to know the warning signs of scams, like high rates of return which sound too good to be true, so-called special offers or pressure to make a quick decision and check our tips and advice on our ScamSmart website.”
