In September 2025, Action Fraud warned pension savers must remain vigilant as more than £17.5 million was lost to pension fraud in 2024 – roughly £48,000 every single day. Read on to find out how scammers could try to get their hands on your retirement savings, and the warning signs to watch out for.
While the figures reported by Action Fraud are staggering, the true scope of pension fraud could be even higher. Some victims of fraud feel embarrassed and may not report the crime as a result. In addition, many people don’t frequently check their pension, so they could have fallen victim without realising.
On average, victims of pension fraud lost more than £33,800. Falling for the scam has the potential to derail the retirement you’ve worked hard to secure. Even when fraud is reported quickly, it might be impossible to retrieve your money, so being aware of the common signs of a pension scam is important.
Action Fraud identified two prevalent ways criminals are targeting victims of pension fraud.
1. Investment fraud pressuring tactics
Scammers who engage in investment fraud often use high-pressure tactics to encourage victims to act without fully thinking about what they’re doing, and they’re using this in pension scams too.
If you’re talking to someone about your pension and they pressure you to invest, downplay the risks, or promise unrealistic returns that seem too good to be true, take a step back. Taking time to consider your options can help you spot a scam before it’s too late.
They might also seek to exploit victims who don’t understand how or when they can access their pension. For example, they might claim they can help you access your savings before you turn 55, which isn’t an option for most pensions.
Engaging with your pension and understanding how and when you can access your pension helps you spot false claims.
Pension cold calling is illegal. So, if you’re contacted out of the blue by someone purporting to be a professional, it’s likely a sign of a scam. If something doesn’t seem right, ask the person you’re speaking with for further details or a break. A genuine financial professional will understand why you’re being cautious.
You can use the Financial Conduct Authority’s Financial Services Register to check if the person you’re speaking with is regulated. Some criminals will use the details of a genuine firm or individual to lull you into a false sense of security. So, use the contact details listed on the register to double-check the information you’ve been provided.
2. Impersonation scam
Some scammers will try to access your pension by impersonating you.
To do this, they’ll need to obtain sensitive information, like your passwords or answers to security questions. Remember, your pension fund or other financial provider will not ask for these details, and it’s a clear sign you’re being targeted by a scammer.
Action Fraud advises that you ensure your online pensions are secure by using a different password for each account. The organisation suggests using three random words to create a strong and memorable password, as well as enabling two-step verification for an additional layer of protection.
Regularly checking your pension and understanding the value of your savings could mean you’re alerted to criminal activity sooner if you are targeted.
We’re here to help if you’ve been targeted by a scam
As your financial planner, we’re here to offer guidance about managing your finances, including if you’ve been targeted by a scammer. If you’re unsure about the communication you’ve received about your pension or another aspect of your financial plan, you can contact us.
You can also report potential scams to Action Fraud here: actionfraud.police.uk
If you believe you’ve been targeted by a scam and have provided them with sensitive information, don’t hesitate to contact your bank or provider. They may be able to prevent the criminal from accessing your account or withdrawing money.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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