Following the pension reforms introduced earlier this year, the charity, Citizens Advice, has seen a dramatic number of pensioners targeted repeatedly by fraudsters, resulting in 1 in 10 falling victim to a con.
Since the over 55s have been given increased freedom with their pension savings, pensioners have been keen to make more from their retirement pot. As a result, optimistic criminals have been luring savers into fake schemes which offer high rates of returns.
Prior to the pension freedoms, fraudsters were persuading victims to transfer their benefits into a new scheme or investment, which would be vetted by the original pension provider. However, due to the increased flexibility now available, they can now persuade savers to withdraw all their cash to reinvest.
According to figures from Action Fraud, losses from such schemes increased dramatically in May to £4.7 million, a 235% rise from £1.4 million in April.
Ros Altmann, pensions minister, recently stated that "Pensions are precious so don't fall foul of conmen who want to snatch your money. If you receive emails, or junk mail with promises of get-rich-quick schemes, chuck them in the bin. And if you get cold-called by someone offering a pension review or help to trace a lost pension, hang up because the chances are it is a scam."
This word of warning combined with the dramatic figures above makes it even more important for savers looking to retire to receive the right advice and guidance before withdrawing cash from their hard-earned pension savings.