TL;DR: UK regulators say pension cold calling is illegal and likely a scam. Watch for 'liberation', 'loan' and 'savings advance' pitches: early access can trigger a tax bill of up to 55%, and scammers may charge around 30%.

👉 Check my digital footprint — free 30-second check →

UK pension fraud comes in two common shapes: a pitch to move your savings into a scheme the fraudster controls, and a cold call that trades on your workplace pension. The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) publish what to listen for.

Cold calls

TPR states that cold calling about pensions is illegal, and that such a call is likely to be a scam. If a caller mentions your employer's scheme and offers a review, a free check or a better return, hang up and phone your scheme using the number on your statement.

Transfer scams

A transfer scam persuades you to move your pension into a scheme the fraudster runs. TPR lists the language to watch for: pension liberation, loan, loophole and savings advance. Each promises access to your money before the normal age.

The tax problem

The FCA says you can normally access a pension from age 55, rising to 57 from 2028. Taking money out earlier can trigger a tax charge of up to 55%. The FCA also says scammers may take a fee of around 30%, so a victim can lose a large share even if money appears to arrive.

The scale

TPR cites Action Fraud/NFIB figures showing pension fraud losses of £17.5 million in 2024, with an average loss of about £34,000.

MoneyHelper's warning signs

MoneyHelper lists further signs of a pension scam:

Numbers from different sources

MoneyHelper puts the average amount stolen per victim at about £47,000, with fees typically 20% to 30% and possible tax charges of over 50% of amounts withdrawn. TPR's figure, from Action Fraud/NFIB, is about £34,000 for 2024. The two come from different sources and periods, so treat both as a range rather than a single number.

MoneyHelper's protection steps

1. Reject all unsolicited contact.

2. Check the firm on the FCA register and check HMRC registration.

3. Research the adviser's reputation and verify a physical address.

4. Heed warnings from your own pension provider.

5. Cross-check the offer on the FCA's ScamSmart site.

6. Get independent financial advice, and consider more than one adviser.

What providers are doing

More than 650 organisations have signed TPR's Pledge to Combat Pension Scams. Contacting your own scheme or provider is the safest first step.

If you responded

1. Stop contact and do not sign anything.

2. Tell your scheme or provider at once.

3. Report to Report Fraud (reportfraud.police.uk), the FCA on 0800 111 6768 and TPR.

4. Report pension cold calls to the ICO.

5. Watch for follow-up scams that reuse your details, including recovery scams.

If you live outside the UK, the RRSP and superannuation guide covers Canada and Australia.

Scammers work from lists of contact details. A free digital footprint check shows where yours appear.

Frequently Asked Questions

Can someone cold call me about my pension?

TPR says cold calling about pensions is illegal and likely a scam.

What words do pension scammers use?

TPR lists 'pension liberation', 'loan', 'loophole' and 'savings advance'.

What is the earliest age to access a UK pension?

The FCA says 55, rising to 57 from 2028. Earlier access can trigger a tax bill of up to 55%.

How much was lost to pension fraud in 2024?

£17.5 million, with an average loss of about £34,000, per figures TPR cites.

Where do I report a pension scam?

Report Fraud (reportfraud.police.uk), the FCA on 0800 111 6768, and TPR. Report cold calls to the ICO.

Since when has pension cold calling been banned?

MoneyHelper says cold calling about pensions has been banned since January 2019.

What fees do pension scammers charge?

MoneyHelper says fees are typically 20% to 30%, and the FCA says scammers may take around 30%.

Is pension liberation legal?

MoneyHelper says accessing a pension before 55 is legal only in very rare cases, so treat any such offer as a warning sign.

Sources

Related Reading