Avoid pension scams by refusing unexpected approaches, checking the firm on the FCA Register, and never transferring under time pressure. Legitimate advisers do not cold-call. Use the FCA’s ScamSmart tool, be wary of guaranteed returns or ‘early access’ before 55, and always take regulated advice before moving any pension.
The short answer
- Any unsolicited approach about your pension is almost certainly a scam, cold-calling has been banned since 2019.
- Verify every firm on the FCA Register using contact details from the Register itself, and check the ScamSmart list for clones.
- Guaranteed returns, ‘early access’ before 55, and pressure to act fast are the classic warning signs.
Pension scams have cost UK savers hundreds of millions of pounds since the 2015 pension freedoms made it far easier to move and access retirement money. The typical victim is not naïve, many are financially confident people persuaded by a slick website, a plausible-sounding ‘adviser’ and an offer that seems only slightly too good to be true. The single most protective habit is simple: treat any unexpected approach about your pension as a scam until you have proven otherwise, and never let anyone rush you.
The warning signs that give a scam away
Fraudsters follow recognisable patterns. Once you know what a legitimate, regulated pension transfer process actually looks like, the contrast with a scam becomes obvious. A genuine firm moves at your pace, puts everything in writing and is happy for you to check its credentials; a scammer manufactures urgency and discourages you from taking independent advice.
Hallmarks of a pension scam
- An unexpected call, text, email or social-media message you did not ask for
- Promises of ‘guaranteed’ returns, unusually high growth or tax-free access before age 55
- Pressure to decide quickly, or a ‘limited-time’ opportunity
- Unusual investments, overseas property, storage pods, forestry, carbon credits, crypto
- A courier sent to collect documents, or being told to transfer before taking advice
How a regulated firm behaves
- Only ever contacts you after you have made the first approach
- Is listed on the FCA Register with a firm reference number you can verify
- Gives you time, written suitability reports and a cooling-off period
- Recommends mainstream, regulated investments appropriate to your goals
- Insists you take advice, and for safeguarded benefits over £30,000, is legally required to
That last point matters. If you hold a defined benefit (final-salary) pension, or a pot with a valuable guarantee, worth more than £30,000, UK law requires you to take regulated advice before transferring, a safeguard explained in our guide to when you need pension transfer advice. Scammers often try to steer you around this rule, which is itself a warning sign.
How to check a firm is genuine
- 1
Search the FCA Register
Look the firm up at register.fca.org.uk. Check the reference number, the permissions it actually holds, and the contact details listed, then use those details, not the ones the caller gave you.
- 2
Use the ScamSmart tool
The FCA’s ScamSmart service lists known scam firms and clone warnings. Clones copy the name of a real, authorised business, so verify every detail independently.
- 3
Beware clones and lookalikes
Fraudsters mimic legitimate firms down to the logo. Phone the number on the FCA Register, never a number supplied in an email or text.
- 4
Take independent, regulated advice
A properly vetted adviser has no incentive to rush you and will happily explain fees, risks and alternatives before anything moves.
If it sounds too good to be true, it is
No legitimate scheme lets you unlock a pension before age 55 (rising to 57 from April 2028) without serious tax consequences, and none can ‘guarantee’ investment returns. Promises of both are the two most reliable signatures of a scam.
The tactics fraudsters rely on
Modern pension fraud rarely looks like the crude cons of the past. The most damaging schemes are patient and professional: a free ‘pension review’ that flatters you into thinking your existing plan is underperforming, followed by a recommendation to move into an exotic, high-return investment held inside a self-invested pension or an overseas arrangement. By the time the returns fail to appear, the money has been layered through several entities and is extremely hard to recover. Emotional pressure is the common thread: a sense that you would be foolish to miss out, or that everyone else is already in.
Be especially cautious of ‘introducers’, unregulated middlemen who are not themselves authorised to advise but pass you to someone who claims to be. They are often paid a commission for every saver they deliver, which is why they push so hard. A genuine adviser is transparent about how they are paid, and a properly vetted firm has no reason to hide behind an introducer. If you cannot trace a clear, authorised chain of responsibility for your money, stop.
Since November 2021, pension schemes can pause a transfer that shows ‘red’ or ‘amber’ flags and, where concerns exist, require you to take free safeguarding guidance from MoneyHelper first. Treat that pause as protection, not an obstacle. If you have already been targeted, report it to Action Fraud and the FCA, and speak to your provider immediately, acting within hours can sometimes stop a transfer leaving your account.
This is information, not personal advice, and investments can fall as well as rise. Vetted Wealth’s role is to match you, free of charge, with an independently vetted, FCA-regulated adviser, so the very first conversation you have about your pension is with someone whose credentials we have already checked. You can also read whether you might lose money transferring or browse the wider pension transfers hub.
In summary
- Any unsolicited approach about your pension is almost certainly a scam, cold-calling has been banned since 2019.
- Verify every firm on the FCA Register using contact details from the Register itself, and check the ScamSmart list for clones.
- Guaranteed returns, ‘early access’ before 55, and pressure to act fast are the classic warning signs.
- Regulated advice is legally required for safeguarded benefits over £30,000, scammers try to bypass it.
- If targeted, contact your provider, Action Fraud (0300 123 2040) and the FCA straight away.
Sources and further reading
- Defined benefit pension transfers Financial Conduct Authority
- Transferring your defined benefit pension MoneyHelper
Read the full guide
For the complete picture, see our in-depth guide: Pension Scams and How to Spot Them.
Speak to a vetted defined-benefit pension transfer advice specialist
This is free information, not personal advice. When you’re ready, we’ll match you with an independently vetted, FCA-regulated specialist, free, and with no obligation.
