Pension pots of one in 10 people aged over 55 targeted by scammers
One in 10 over-55s say they have been targeted by scammers since the launch of Pension Freedoms in 2015.
A study conducted by Prudential warned that a high number of pensioners have been approached by suspected scammers offering to unlock or transfer funds to defraud people of their retirement savings.
One third of those surveyed said the risk of being defrauded was a major concern since Pension Freedoms came into force.
Read more: Third of people using pension freedoms have never invested
Despite this, 49 per cent of those approached did not report their concerns, as they did not know how or where to go for help.
Recent statistics from ActionFraud showed that 991 cases have been reported since the launch of Pension Freedoms, equalling a total loss of £22.7m.
Prudential also found that less than one in five (18 per cent) people who had been approached by scammers reported the issue to the authorities.
Nearly half (47 per cent) of this group said that scammers tried to gain access to their account by promising to unlock pension funds or access money early.
It follows an investigation by consumer watchdog Which last year that managed to easily access the public’s data by paying as little as 4p for information.
Vince Smith-Hughes, retirement income expert at Prudential 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.