UK pension savers are being warned to be careful about unexpected offers after research found that many people struggle to recognize the warning signs of pension scams.
Victims lost about £47,000 on average to pension scams last year, according to figures cited by retirement specialist Standard Life. The warning, reported by the Daily Express, comes as fraudsters use increasingly convincing methods to target retirement savings.
Standard Life found that 62% of UK adults were confident they could identify a scam. However, many were unsure about some of the basic rules that can help people tell a genuine pension company from a fraudster.
Cold Calls Are a Warning Sign
One of the biggest areas of confusion involves pension cold calling, meaning an unexpected phone call about a pension opportunity or review.
Standard Life found that 60% of adults either wrongly believed pension providers and advisers could legally make unsolicited pension calls or were unsure.
Pension cold calls are banned in the UK. The Financial Conduct Authority, the country’s financial regulator, warns consumers to be cautious about unexpected contact offering pension reviews, investment opportunities or early access to savings.
Scammers can also copy the names, logos and contact details of real businesses. Standard Life’s research found that many people believed an investment must be safe if the company appeared on the FCA register.
The register shows whether a financial business is authorized, but that does not mean every offer using its name is genuine. Fraudsters can impersonate real companies.
Other warning signs include pressure to act quickly, promises of unusually high returns and offers of early pension access. Most people cannot normally access private pension savings before age 55, although the normal minimum age is due to rise to 57 in April 2028.
Tax Changes Could Attract Scammers
Standard Life has also warned that upcoming changes to inheritance tax could create new opportunities for fraud.
Inheritance tax can apply to money and property left behind after someone dies. From April 2027, unused pension funds are expected to fall within the inheritance tax system in more circumstances.
That could lead more people to review their pension arrangements. Standard Life warned that scammers may use the change to promote supposed tax-saving investments or pension transfers.
Donna Walsh, head of Master Trust and IGC Governance at Standard Life, said fraudsters can use professional-looking websites, positive reviews and genuine-looking paperwork to appear trustworthy.
The company advises people to check an offer independently and avoid making rushed decisions.
Families May Be Missing Pension Help
There are also legitimate pension rules that families may not know about.
A spouse or partner can pay up to £2,880 a year into the pension of someone who is not earning.
Government tax relief can increase that contribution to £3,600. In simple terms, tax relief means the government adds money to eligible pension contributions.
This can help someone continue building retirement savings while taking time away from work to care for children or other relatives.
Grandparents and some other family members may also qualify for specified adult childcare credits if they care for a child under 12.
The credits can help fill gaps in a person’s National Insurance record, which is used to work out entitlement to the UK State Pension.
Sky News reported that 202,037 applications for the credits were made between 2016 and 2025. Of those, 159,116, or 79%, were approved.
Claims can be backdated to April 2011 when the eligibility rules are met.
Check Before Combining Pensions
People who change jobs several times can end up with several workplace pension pots. Moving them into one account is known as pension consolidation.
Combining pensions can make savings easier to manage, but Sky News warned that people should check what benefits they could lose before moving their money.
A defined contribution pension is a pot built from payments made by a worker and often their employer. The money is invested, so its final value depends partly on investment performance.
A defined benefit pension works differently. It usually promises a regular retirement income based on factors such as salary and years of service.
Sarah Coles, head of personal finance at AJ Bell, told Sky News that transferring out of a defined benefit scheme can mean giving up valuable guarantees.
Some older pensions may also include a guaranteed annuity rate, which promises a set rate for converting savings into retirement income. Others may allow a larger tax-free lump sum.
Moving the pension could mean losing those benefits permanently.
For savers, the main advice is to check carefully before responding to an unexpected offer or transferring retirement money. The FCA recommends checking that a financial firm is properly authorized and seeking guidance or regulated advice when necessary.
A professional-looking offer is not proof that an investment is genuine, while a simple pension transfer can sometimes mean giving up benefits that are difficult to replace.
