Avoid Pension Scams
Sadly, the wealth people work so hard to build in their pension funds makes them tempting targets for fraudsters and thieves. There’s even a risk that you might become a victim when setting up your first pension fund.
So just how do you avoid pension investment scams? Below is a checklist to follow that could help you avoid scams and invest your retirement savings safely and securely.
Sounds Too Good To Be True? It Probably Is…
It’s natural when searching for the best private pension that we look for the highest promised returns, but these can sometimes be fake opportunities.
Well-known unregulated investment scams are often overseas and might involve foreign hotels, vineyards or other construction projects.
While there are plenty of legitimate overseas investments, particularly if you’re happier to take a higher degree of risk, always be wary of such opportunities and do your homework to make sure you know what you’re getting into.
You should take advice on all investments from a regulated financial adviser, but this is especially true for investments promising big returns as these are probably carrying a high degree of risk.
A genuine, registered financial adviser should lay out the risks of investing your money in these areas rather than simply promising huge rewards for doing so.
Check the FCA Register
The Financial Conduct Authority’s Financial Services Register is totally free to use and is fully searchable, so you can discover if the company you’re thinking of investing with is authorised / registered by the Prudential Regulation Authority (PRA) and / or the FCA to conduct financial business in the UK.
The register has recently been updated to include firms reported as providing regulated products or services without the correct authorisation, as well as those known to be running scams. A search for such a company will throw up its entry on the register with prominent warnings totally clear.
Deciding on a private pension is a big decision. You’re choosing one of the investment vehicles that will see you through your old age. Take as much time as you need to find the right pension for you.
Unscrupulous firms will use high-pressure sales techniques, such as offering tempting investment opportunities for only a short space of time.
Don’t allow yourself to be swept along with such tactics.
Some fraudsters won’t let you call them back at a later date, perhaps because they have no inbound telephone service. That should also arouse immediate suspicion.