Retirement savings are a favorite target for scammers because the sums involved are large and people are often unfamiliar with the fine details of how transfers and withdrawals work. Pension Transfer scams typically start with unsolicited contact and end with money moved somewhere it can’t be recovered from.
How Pension Transfer scams work
A caller or "adviser" contacts you out of the blue offering a free pension review, then pushes you to transfer your pension pot into a new, unfamiliar scheme promising unusually high guaranteed returns. The pitch usually promises unusually high, "guaranteed" returns with no risk — a combination that does not exist in legitimate investing.
Red flags to watch for
Cold calls, texts, or emails about your retirement savings you didn’t request, pressure to decide quickly, promises of guaranteed high returns, and requests to transfer your full balance to a scheme you’ve never heard of.
How to protect your savings
Never make decisions about your retirement savings under time pressure. Verify any adviser or firm is properly registered with FCA – Financial Conduct Authority before proceeding, and get independent financial advice before transferring or withdrawing funds. If something feels off, pause and verify independently — legitimate offers do not disappear overnight.
Frequently Asked Questions
How do Pension Transfer scams typically start?
A caller or "adviser" contacts you out of the blue offering a free pension review, then pushes you to transfer your pension pot into a new, unfamiliar scheme promising unusually high guaranteed returns.
What is a Pension Transfer scammer really trying to get?
Scammers running pension transfer scams try to get you to move your entire pension pot into a scheme they control, then disappear with the funds, or invest it in high-risk, illiquid assets that lose most of their value.
What are the biggest red flags of a Pension Transfer scam?
Unsolicited contact out of the blue, promises of "guaranteed" high returns with no risk, pressure to act quickly or "before this offer expires," and requests to transfer your entire pot to an unfamiliar or unregulated scheme.
How do I check if a Pension Transfer offer is legitimate?
Verify the person or firm is registered with FCA – Financial Conduct Authority, never make a decision under time pressure, and get independent financial advice from a regulated adviser before transferring or withdrawing any retirement savings.
What should I do if I think I’ve already been targeted by a Pension Transfer scam?
Stop all contact with the scammer immediately, do not transfer any further funds, and report it to Action Fraud UK. If you’ve already transferred money, contact your pension or plan provider right away to see if the transfer can be halted or reversed.