Financial & Legal News

INSPIRE: Protecting your savings: Pull up the drawbridge and drop the portcullis!

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We are hearing a lot through the media about the attacks we may experience under the new UK Pension Reform arrangements and regulations, when we gain access to our pension pots and can choose to do what we like with them. What an opportunity for fraudsters who right now are ready to assault our new wealth castles!

You may have recently heard the story of the person who was persuaded, after three hours of a home visit by a fraudster, to invest her £30,000 hard-earned pension pot into his financial organisation’s scheme. In three hours, she had lost that £30,000, stolen from her by the fraudster, whose rate of pay had suddenly become £10,000 per hour!

There are two simple reasons why our pension pots are at risk and why we can be robbed so easily:

  • Firstly, we are all tempted by promises of ‘market-beating returns’. The old adage though, remains: if it sounds too good to be true, then it probably is. Watch out in particular for promises that do not discuss at length your individual plans and circumstances. This is, at best, product selling and at worst, a potential scam, rather than proper financial planning.
  • Secondly, the fraudsters are clever, well prepared, rehearsed and professional. Parting people from their cash is their job and they are well-armed and equipped to do so, with impressive documentation and well-rehearsed manners and scripts. Always research them thoroughly, checking their FCA registration independently.

The pension freedoms present a great opportunity to many of us, but don’t forget that they also offer the same for the fraudsters. Time to man your defences and engage in some proper retirement planning!

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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