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Pensions scams
Pension scams can be hard to spot, and anyone can be targeted. According to the 2023 Crime Survey for England and Wales, 1 in 17 adults experienced fraud in a single year.
What scammers may do
Scammers often seem friendly and knowledgeable. Their websites and other materials can look professional, and the reviews may seem genuine.
They’ll try to persuade you to transfer money to them with promises that they can invest your money with high or guaranteed returns. Your money is then moved into schemes that do not exist, stolen, or put into unusual, high-risk investments.
Combatting pensions scams
We’re committed to helping you identify and protect your pension savings from scams. We follow the Pension Scams Industry Group (PSIG) Code of Good Practice and have taken the Combat Scams Pledge.
If we suspect fraud or scams, we may:
- carry out checks
- ask you to take financial advice
- refuse your transfer request
This page explains how pension frauds and scams work, how to spot them, and ways of avoiding them.
Keeping your pension safe from scammers
Your NHS Pension Scheme contributions provide important benefits for you and your family. Unlike private sector pensions, the Scheme does not have an invested pension fund. Instead, it is a statutory scheme and when you retire, your benefits are fully guaranteed by the government.
You need to keep your pension safe because it’s important for your future when you retire. It’ll be one of your main sources of income. This makes it a target for scammers and other fraudsters who want to use your money for their benefit.
Scammers may also offer you alternative savings schemes that seem better value than continuing with your NHS Pension contributions. If you’re worried about money and want to use your pension to repay debts, visit the MoneyHelper website for advice and to find a free debt adviser who can help you.
Warning signs of a scam
Contact you are not expecting
Cold calling about pensions is illegal. This is when a company contacts you even though you have not asked for information. Scammers may also contact you through social media using friends and family groups.
Requests for remote access
Be cautious if someone asks you to download software so they can access your device remotely.
Free pension reviews
Professional advice is rarely free, especially if you have no connection with the company.
Access to your pension before age 55
The NHS Pension Scheme allows this if you're retiring due to ill health, or you joined the Pension Scheme before 6 April 2006. In all other cases it could be an ‘unauthorised payment’ which means you could pay tax of up to 55%.
Scams may advertise schemes as ‘pension liberation’ or a ‘pension loan.’
Pressure to act quickly
Scammers may claim an offer is time-limited or put you under pressure to sign documents while a courier or representative waits. Take your time to make all the checks you need.
Guarantees of better returns on savings
Most saving schemes have some form of risk which should be explained clearly. Normally, higher rates are paid for riskier investments where you can lose money.
Unusual and high-risk investments
These are often overseas, unregulated, and offer no consumer protections.
Long-term pension investments
It could be several years before you notice anything is wrong, and by then it’ll be too late.
Protect yourself from pension fraud
Reject unexpected offers and be wary of ‘free’ pension reviews
If a company you've never dealt with contacts you unexpectedly, it’s probably a scam.
Check who you’re dealing with
Anyone offering advice or financial services should be authorised by the Financial Conduct Authority (FCA) to give pension or investment advice. You should also check they’re on the Financial Services Register.
If the company is not authorised by the FCA, you cannot use the Financial Ombudsman Scheme or the Financial Services Compensation Scheme. This will make it unlikely you can claim if things go wrong.
Make sure the website is genuine
Beware of cloned websites that look like they belong to genuine companies. Do not use the contact details given. Instead, check the contact details on the FCA register.
You should also use the FCA’s ScamSmart Investment Checker.
Check what others say
Search forums and social media for reviews, complaints, and personal experiences with the company or the offer.
Check their contact details
You should check they have a dedicated landline number or if they only provide mobile numbers. Also check if the address is a PO Box or serviced office. If anything seems to be hidden, be cautious.
Do not be rushed or pressured to act
Be wary of deals that sound too good to be true. Take your time to make all the checks you need. Do not be rushed or pressured by time-limited deals or actions.
Get impartial information and advice
MoneyHelper is a government service that provides free, independent, and impartial guidance on anything money related. There are sections on pensions and retirement, savings, budgeting, and debt counselling. They can advise on the best options for you.
You can also use an independent financial adviser to help you make the best decision for your circumstances. Visit our useful information webpage to find out how to choose one.
Stop! Think Fraud campaign
You can also visit the Stop! Think Fraud - How to stay safe from scams government campaign for information on how to recognise and avoid scams and fraud.
If you think you've been scammed
Contact NHS Pensions immediately
If you've already asked NHS Pensions to make a transfer and you think you've been scammed, get in touch straight away:
Telephone: 0300 330 1346
Email: [email protected]
Report it to the Financial Conduct Authority (FCA)
Use the online ‘report a scam’ form on the Financial Conduct Authority website.
Telephone: 0800 111 6768
Telephone from outside the UK: +44 207 066 1000
Report it to Action Fraud
Make a report online at ActionFraud.
Telephone: 0300 123 2040
Telephone from ouside the UK: +44 300 123 2040
Public services pensions remedy (McCloud) - potential for scams
In 2015, the government made changes to most public service pension schemes that were found by the Court of Appeal to be discriminatory to younger members.
The remedy aims to correct this discrimination that could have taken place between 1 April 2015 and 31 March 2022.
We’ll contact affected members with the information needed for any remedial action. This is free of charge, and you do not need to use a third party to make any claims.
You can find more information on our dedicated webpages: The public service pensions remedy – McCloud.
Scammers will be looking for new ways to commit fraud. Stay cautious about any offers and look for the signs of a scam to protect yourself from fraud.