What's going on
Pension scams are one of the most damaging fraud types in the UK. Criminals go after people's retirement savings because the amounts are large and the victims are often older, more trusting, and less familiar with the tactics being used. When the government introduced pension freedoms in 2015, it gave people more control over their retirement savings. It also opened the door for scammers.
Action Fraud received 519 reports of pension fraud in 2024, with total losses hitting £17.5 million. The average loss was £33,848 per person. And those are just the cases that actually got reported. FCA research suggests around 800,000 UK adults lost money to investment and pension scams in the 12 months to May 2024. The Pension Scams Industry Group puts the total since 2015 at roughly £10 billion across 40,000 savers.
Over half of reported pension fraud victims are aged 50 to 69 (Action Fraud, 2024). Between October 2024 and March 2025, almost a third of pension fraud reports involved impersonation, with callers pretending to be from pension providers or government bodies. Chances are, if you've got a pension pot of any size, you're a target.
What these calls sound like
The scripts change, but the core pitch doesn't. A caller who sounds confident and professional offers you something that seems too good to ignore. Here are some examples based on real reports to Action Fraud and The Pensions Regulator.
"Hello, am I speaking to [name]? Brilliant. I'm calling from [company name], a pension advisory service. We're getting in touch because a lot of people in your area have pensions that aren't performing as well as they should be. We offer a completely free review where one of our qualified advisers will look at your pension and tell you if there's a better option. There's no obligation at all. Would you have a few minutes to go through some details?"
"Hi there, this is [name] from [company]. I'm calling because you may be eligible to access your pension savings early. Many people don't realise they can release money from their pension before the normal retirement age. We've helped clients use their pension funds to pay off mortgages, clear debts, and make investments. Can I just ask how old you are and who your pension is with?"
"Good afternoon. I'm calling from [company], a specialist retirement fund manager. We have an exclusive investment opportunity in overseas commercial property that's currently returning 8% per year, guaranteed. Your existing pension is almost certainly sitting in a fund that barely keeps up with inflation. If you transfer your pot into our scheme, we can lock in those returns for the next ten years. I just need a few details to check your eligibility."
"This is an urgent call regarding your pension account. I'm calling from the pension protection team at [provider name]. We've identified some irregularities with your account and there's a risk your funds could be affected. We need to arrange a transfer to a secure account to protect your savings. Can you confirm your date of birth and your pension reference number so I can pull up your details?"
That's the key thing to remember
Every one of these calls is illegal. It doesn't matter how polished the caller sounds, what company they claim to represent, or how reasonable the offer seems. Cold calling about pensions is against the law. A legitimate financial adviser will never phone you out of the blue about your pension.
How the scam works, step by step
Pension scams are well rehearsed operations. They don't happen in one phone call. The whole thing unfolds over days or weeks, which makes it harder to spot while it's happening.
1. The approach
You get a call, a text, or sometimes a message on social media. The caller sounds polished and professional. They mention a free pension review, better returns, or early access to your pot. Some pose as representatives from well known firms or even claim to be from your own pension provider. The initial approach is always friendly and low pressure. They're not asking for money yet. All they want at this stage is your pension details and your trust.
Remember: this call is illegal
Since January 2019, any unsolicited call about your pension is against the law. It doesn't matter if the caller claims to be from a legitimate firm, a government body, or your own pension provider. If you didn't ask for the call, they're breaking the law.
2. The hook
Once they've got you talking, they'll present something that sounds like a brilliant opportunity. Maybe it's an investment in overseas property, a forestry scheme, storage units, or a Small Self Administered Scheme (SSAS) that promises returns your current pension can't match. They'll show you glossy brochures, professional looking websites, and paperwork that looks legitimate. Some will even arrange face to face meetings. Everything is designed to build trust and make you comfortable with the idea of moving your pension.
SSAS schemes are a favourite tool
Small Self Administered Schemes have become one of the most common vehicles for pension fraud. Average losses in SSAS cases are now hitting £38,400 per person. The government announced new protections targeting SSAS misuse on 9 June 2026 (GOV.UK), but scammers keep adapting.
3. The transfer
Now comes the ask. They need you to sign transfer paperwork to move your pension pot from your current provider into their scheme. They'll handle all the admin for you. They'll even deal with your provider directly if needed. What they don't tell you is that once the transfer is complete, your money gets funnelled into unregulated investments, overseas accounts, or schemes that exist only on paper. The transfer process can take a few weeks, and during that time everything still looks normal.
4. The disappearing act
At some point, the calls stop. The adviser who was so attentive becomes impossible to reach. The website goes down. The returns they promised never materialise, and when you try to get your money back, there's nobody to talk to. Your pension pot has gone. In many cases, victims don't realise something is wrong until months or even years later, when they try to access their pension and discover it's empty or invested in something worthless.
The early access trap
If you were convinced to access your pension before age 55 through one of these schemes, HMRC can charge you a tax penalty of up to 55% on the amount withdrawn. You lose money to the scammers and then lose more to the tax charge. Some victims end up with nothing at all.
Red flags that give the scam away
Signs it's a scam
- • You were contacted out of the blue about your pension
- • They offer a free pension review you didn't ask for
- • They promise guaranteed returns or high fixed rates
- • They say you can access your pension before 55
- • You're pressured to make a quick decision
- • The firm or adviser isn't on the FCA register
- • They suggest unusual investments like overseas property, forestry, or storage units
What a legitimate adviser does
- ✓ Will be listed on the FCA Financial Services Register
- ✓ Will never cold call you about your pension
- ✓ Will explain the risks of any transfer clearly
- ✓ Will never guarantee investment returns
- ✓ Will give you time to think and won't pressure you
- ✓ Will charge transparent fees you agree to upfront
- ✓ Will have a verifiable UK office address and company number
Check the FCA register before you do anything
Don't trust the caller. Trust the register.
Before you speak to anyone about your pension, check whether they're authorised by the FCA. Search for the firm and the individual adviser on the Financial Services Register at register.fca.org.uk. If they're not on there, do not hand over any personal information or sign anything. You should also check the FCA Warning List at fca.org.uk/consumers/warning-list-unauthorised-firms for firms that have already been flagged. The FCA's ScamSmart campaign has a pension checker tool specifically designed to help you spot dodgy schemes.
Search the FCA register
Look up the firm and adviser on the Financial Services Register and Warning List.
Use ScamSmart
The FCA's ScamSmart tool helps you check pension and investment offers before you commit.
Call The Pensions Regulator
Ring 0800 011 3797 if you're worried about a pension scheme or transfer.
Lost money to a pension scam? Do this now
Contact your pension provider immediately
If a transfer is still in progress, your provider may be able to stop it. Ring them straight away and explain what's happened. Providers now have more power to pause and investigate suspicious transfers, so the sooner you call, the better your chances.
Report it to Report Fraud (formerly Action Fraud)
Report the scam at reportfraud.police.uk or call 0300 123 2040. Your report creates a police record and feeds into the National Fraud Intelligence Bureau. In Scotland, report to Police Scotland on 101 instead.
Tell The Pensions Regulator
Call The Pensions Regulator on 0800 011 3797 or use their online reporting form. They investigate pension scheme fraud and can take action against the operators of rogue schemes.
Report the firm to the FCA
Call the FCA on 0800 111 6768 or use their online contact form at fca.org.uk. Your report helps them add the firm to their Warning List, which protects other people from the same scam.
Forward scam texts to 7726
If you received a text message about your pension, forward it to 7726. This is the number used by all UK mobile networks to report spam and scam texts. It's free to use.
The short version
- Cold calling about pensions is illegal. If you get one, hang up.
- No legitimate adviser will promise guaranteed returns on your pension
- Check the FCA register before speaking to anyone about your pension
- Never agree to transfer your pension over the phone
- Accessing your pension before 55 is almost always a scam
- Your provider can flag and block suspicious transfers
- Report pension scam calls to Report Fraud on 0300 123 2040
- Call The Pensions Regulator on 0800 011 3797 if you're worried