What are the warning signs of a pension scam?

Key warning signs include unsolicited contact (cold calls), pressure to act quickly, promises of guaranteed high returns, offers of early access before 55, free pension reviews, and unusual investment opportunities like overseas property or cryptocurrencies.

Can I access my pension before 55?

Generally no — accessing your pension before 55 (rising to 57 from 2028) usually means it's a scam or results in massive tax charges of up to 55%. Legitimate early access only exists in very limited circumstances like terminal illness.

Are pension cold calls illegal?

Yes — since 2019, unsolicited calls about pensions are illegal in the UK. If someone cold calls you about your pension, it's very likely a scam. Hang up and report it.

How do I check if a pension company is legitimate?

Check they're authorized by the FCA using the Financial Services Register. Never trust links in emails or texts — search for the FCA register directly. Also check the FCA's Warning List for known scam firms.

Pension Scams — How to Spot and Avoid Them (UK Guide) | PocketWise

Pension Scams — How to Spot and Avoid Them (UK Guide)

Learn how to identify pension scams, the warning signs to watch for, and how to protect your retirement savings from fraudsters.

By PocketWise · 23 March 2026 · 5 min read

Pension scams have cost UK savers hundreds of millions of pounds. Knowing the warning signs can protect your retirement savings.

Warning Signs of a Pension Scam

Red Flags — Stop Immediately If You See These

Warning Sign	Why It’s Suspicious
Cold call about your pension	Illegal since 2019
Unsolicited text/email	Legitimate firms don’t approach this way
Pressure to decide quickly	Scammers don’t want you to research
Guaranteed high returns	No investment is risk-free
Access before 55	Usually illegal or massive tax penalty
Free pension review	Often lead-in to scam
Unusual investments	Overseas property, forestry, crypto schemes
One-off opportunity	Creates false urgency
Complicated structures	Designed to obscure what’s happening

The Most Common Tactics

Tactic	What Happens
Liberation scam	Promise early access (before 55), charge huge fees
Investment scam	Move your pension to fake/risky investments
Advance fee scam	Charge upfront fees, then disappear
Clone firm scam	Pretend to be legitimate company
Relationship building	Build trust over time before scamming

How Pension Scams Work

The Liberation Scam (Early Access)

Contact claims you can access pension before 55
You transfer your pension to their scheme
You receive small amount (maybe 50-70%)
They keep the rest as “fees”
HMRC taxes you 55% on unauthorized payment
You lose most or all of your pension

Example Loss:

Your Pension	£100,000
“Fee” taken by scammer	-£30,000
You receive	£70,000
HMRC tax (55%)	-£55,000
Your actual loss	£85,000

The Investment Scam

Offered “free pension review”
Advised to transfer to new scheme
Money invested in high-risk or fake assets
Investment fails or disappears
Scammers pocket fees and commissions
You have nothing at retirement

Clone Firm Scams

Scammers copy legitimate firm’s details
Contact you using their name
Slightly different phone number/email
You believe you’re dealing with real company
Send pension to scammer’s account
Real firm never received anything

Who’s at Risk

Higher Risk Groups

Group	Why Targeted
50-60 year olds	Larger pension pots, approaching retirement
Newly retired	May have large lump sums
Recently divorced	May have received pension share
Made redundant	May want to access pension
In financial difficulty	Tempted by “early access”

Regardless of Age

Anyone with a defined contribution pension can be targeted. Scammers buy data lists and contact thousands of people.

How to Protect Yourself

Step 1: Never Engage with Cold Calls

Action	Why
Hang up immediately	Don’t engage with possible scammers
Don’t press buttons	Can confirm your number is active
Don’t callback the number	May connect you to scammers
Report the call	Help stop others being targeted

Step 2: Verify Any Contact

Check	How
FCA Register	fca.org.uk/firms/financial-services-register
FCA Warning List	fca.org.uk/scamsmart
Companies House	Find registered company details
The Pensions Regulator	Check pension schemes

Important: Never use links in emails or texts. Search for the register directly.

Step 3: Be Skeptical of Promises

Claim	Reality
“Guaranteed 10%+ returns”	No legitimate investment guarantees this
“Risk-free”	All investments carry risk
“Early access no problem”	Illegal or heavily taxed
“Act now or miss out”	Pressure tactic
“Once in a lifetime”	Creating false urgency

Step 4: Take Your Time

Rule	Why
Sleep on it	Never decide immediately
Research thoroughly	Check independent reviews
Talk to someone	Discuss with family or friends
Contact your current provider	Get their perspective
Use Pension Wise	Free guidance for over 50s

Step 5: Get Proper Advice

Service	What They Offer
Pension Wise	Free, impartial guidance (over 50)
FCA-regulated adviser	Regulated financial advice
The Pensions Advisory Service	Free pension guidance
Citizens Advice	General money help

Checking If Something Is Legitimate

FCA Financial Services Register

Every legitimate UK financial services firm must be on this register.

How to check:

Go to register.fca.org.uk
Search firm name
Check address matches exactly
Check phone number matches
Verify what they’re authorized to do

Warning List

The FCA maintains a list of known scam firms: fca.org.uk/scamsmart

Contact Details Verification

Check	What to Look For
Phone number	Match exactly with FCA register
Email domain	Should match company website
Office address	Search independently, verify
Website	Check URL — slight misspellings are red flags

If You Think You’ve Been Scammed

Immediate Steps

Priority	Action
1	Stop any further payments/transfers
2	Contact your pension provider immediately
3	Report to Action Fraud (0300 123 2040)
4	Report to The Pensions Regulator
5	Contact FCA if firm claims to be authorized

Potential Recovery

Avenue	Details
Financial Ombudsman	If regulated firm was involved
FSCS	If regulated firm has failed
Legal action	Against individuals/firms involved
Pension Protection Fund	For some scheme failures

Reality: Recovering money from scams is difficult. Prevention is far better than cure.

Legal Protections

Pension Scams: The Law

Protection	Details
Cold calling ban (2019)	Pension cold calls illegal
FCA regulation	Firms must be authorized
Pension transfers	Provider must check for red flags
Statutory warning	Providers must give scam warnings

Transfer Red Flags Providers Must Check

Your pension provider may delay or refuse transfers if:

Overseas transfer with poor fund reputation
Unusual investment structure
High-risk investments
Overseas adviser
Pressure to transfer quickly
Dubious scheme registration

Questions to Ask

If approached about your pension, ask:

Question	Why
“What’s your FCA number?”	Check against register
“Where are you based?”	Verify address
“Can I have this in writing?”	Get documentation
“How are you paid?”	Understand conflicts
“What are all the fees?”	Scams hide fees
“Can I take a week to decide?”	Legitimate firms will agree

Key Contacts

Organization	Purpose	Contact
Action Fraud	Report scams	0300 123 2040
The Pensions Regulator	Report pension scams	thepensionsregulator.gov.uk
Pension Wise	Free guidance (50+)	0800 138 3944
Financial Ombudsman	Complaints	0800 023 4567
Citizens Advice	General help	citizensadvice.org.uk

Summary

Key Point	Remember
Cold calls are illegal	Hang up immediately
If it sounds too good…	It’s probably a scam
No early access	Before 55 is usually a scam
Verify everything	Check FCA register directly
Take your time	Never rush pension decisions
Use official guidance	Pension Wise is free and impartial
Report suspicions	Help protect others