Your pension may be one of the largest sums of money you ever build. That makes it attractive to scammers.
A pension scam does not always look like a scam. It may look like a free review, a better investment opportunity, early access to your money, or a professional-sounding transfer recommendation.
The safest rule is simple:
Do not transfer your pension because of pressure, fear, excitement or a promise of better returns. Check everything independently first.
The FCA warns that pension scams often involve attractive offers designed to persuade people to transfer or release money from their pension. Its pension scam guidance was updated in January 2026, which makes this a very current issue for UK consumers.
You can also read our wider guide: How to Protect Yourself from Financial Scams in 2026.
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External link: FCA Pension Scams
Why Pension Scams Are So Serious
Pension scams can be financially and emotionally devastating because they may affect decades of savings.
The Money and Pensions Service has reported that the emotional cost of pension scams can go beyond financial loss, affecting confidence, health and family relationships. It also warns that once someone has been targeted, there can be a risk of being targeted again.
A scammer may not just want your money once. They may come back later pretending to help you recover it.
Common Pension Scam Warning Signs
| Warning sign | Why it is dangerous |
|---|---|
| You are offered a free pension review out of the blue | This may be a way to start a transfer conversation |
| You are told to act quickly | Pressure reduces your ability to check properly |
| You are promised high or guaranteed returns | Real investments involve risk |
| You are offered early pension access | This can lead to tax charges and fraud |
| You are told to transfer overseas | Some overseas schemes are high risk or fake |
| The adviser avoids clear written details | Genuine advice should be documented |
| You are told not to speak to your current provider | Scammers try to isolate you |
Be Careful With “Free Pension Reviews”
A free review may sound helpful, but it can be used as the opening line for a pension transfer scam.
Be especially careful if the person says:
- “Your current pension is underperforming.”
- “We can get you a much better return.”
- “Your pension provider does not want you to know this.”
- “You need to act before rules change.”
- “This opportunity is only open for a short time.”
A genuine adviser will not pressure you to transfer before you have had time to understand the risks.
How to Check Before Transferring a Pension
1. Check the FCA Register
Before dealing with any firm or adviser, check whether they are authorised and whether they have permission for the service they are offering.
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External link: FCA Firm Checker
2. Use Official Contact Details
Do not use the phone number or email address given by the person who contacted you. Search for the firm independently and call back using official details.
3. Ask for Everything in Writing
You should be given clear information about:
- The adviser
- The firm
- Fees and charges
- Investment risks
- Transfer risks
- Tax implications
- What happens if you do nothing
4. Be Suspicious of Guarantees
A pension transfer should never be sold as a guaranteed route to wealth. If the return sounds certain, high and risk-free, pause.
Read more about this here: Investment Scams: How to Spot Fake Opportunities Before You Lose Money.
5. Speak to a Regulated Adviser
Pension decisions can have long-term consequences. Before transferring, speak to a regulated adviser who can explain whether the transfer is suitable for your circumstances.
You can also learn more about Pension Planning and Financial Planning.
Pension Transfer Questions to Ask Before You Act
| Question | Why it matters |
|---|---|
| Who contacted me first? | Unexpected contact is a warning sign |
| Is the firm FCA-authorised? | Helps protect against unauthorised firms |
| Is the investment regulated? | Some investments have limited protection |
| What are the fees? | Hidden fees can reduce your pension |
| What risks am I taking? | Every investment has risk |
| What tax could I pay? | Early access can create tax problems |
| What happens if I stay where I am? | Scammers avoid this question |
What If You Have Already Started a Pension Transfer?
Stop and check before signing anything else.
Contact:
- Your existing pension provider
- Your bank, if money has moved
- A regulated financial adviser
- Action Fraud, if you believe a scam may be involved
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External link: Report Fraud
If someone is still pressuring you, do not respond further until you have taken independent advice.
Related Reading
You may also find these useful:
Speak to Heathcote Financial Planning Before You Transfer
Before transferring a pension or responding to a free pension review, speak to a regulated adviser.
A short conversation before you act could protect years of retirement savings.
Speak to a Regulated Adviser Before Transferring Your Pension
Questions People Ask About Pension Scams
How do I know if a pension review is genuine?
Check whether the firm is authorised, use official contact details, and never rely only on information sent to you by the person making the offer.
Can I access my pension early?
In most cases, accessing your pension before age 55 can create serious tax and financial consequences. Be very careful of anyone offering early access.
Are all pension transfers risky?
No, but pension transfers are serious financial decisions. The risk comes from transferring without understanding suitability, charges, tax, investment risk and possible loss of benefits.
What should I do if I think I have been targeted?
Stop communication, keep records, contact your pension provider, speak to a regulated adviser and report the issue if fraud is suspected.