Should my daughter think about accessing her pension benefits before she reaches age 55?

My daughter was recently approached by a company claiming it could transfer her pension benefits before she reaches age 55. Is this a good idea?

Question asked by Irene Flannigan
Need Pension Advice?
Call us on 02084327333
First Name

Answered by Stephen Moore

Don’t get sucked into a pension scam

Unless your daughter is in very poor health, it’s illegal for her to access her pension savings before the age of 55.

Unfortunately, the recent changes to the pension regime that have increased the ways in which pension benefits can now be accessed have also created numerous opportunities for unscrupulous operators to deceive unwary pension savers. As a result, pension scams are on the rise.

There are now numerous approaches being employed by such con men including offers of free pension reviews, promises of improved returns, pension loans or early access to their pension cash. Some enterprising tricksters have even gone as far as recommending that savers transfer their pension into tiny occupational schemes to avoid legal scrutiny or sending couriers to your doorstep with urgent paperwork that must be signed on the spot.

The only people who benefit from these arrangements are the con men themselves. Those savers who are drawn in by such ruses and who might manage to access their pension pot before the age of 55 will quickly find that they’re subject to punitive tax charges which will take a massive bite from their hard-earned pension savings.

Make sure your adviser is registered with the FCA

The only way to ensure that you or your family are not the intended victims of a targeted scam is to make sure that your adviser is registered with the Financial Conduct Authority (FCA). This can be done by using the FCA register. If your daughter has any doubts about what she’s been offered or the person who has approached her, she might like to arrange a free consultation with her local Pension Wise office – a government-backed institution which provides free ‘guidance’ on all aspects of retirement planning.  

The Pensions Regulator has also produced a useful 10 step guide to spotting a pension scam including the need to be wary of unsolicited calls, texts or emails; checking out the FCA’s scamsmart; avoiding overseas investment deals such as hotels or vineyards and not getting pulled in by promises of ‘guaranteed’ rates of return or professional-looking websites or brochures.

pension scams
pension con men
pension fraud
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

My husband and I are separating after 25 years. He’s always been the breadwinner, whereas I’ve...
A few years ago I was diagnosed with coronary heart disease. As a result, I have angina and recently...
I’m a bit worried my private pension fund won’t last long enough, how do I prevent it...
I am heading towards retirement and trying to squirrel away as much as I can. I wanted to know whether...
Need Help? Live chat now and get an instant answer from our Experts...


Our Latest Reviews
Kevin Paul

Excellent service renewing our medical insurance, professional advice, good rates found and excellent professional after service, highly recommended.

Max Edgar

Nadeem was brilliant. He was very patient and worked very well with me to come up with the best solution possible for my budget. Perfect solution. Thank you very much.

Aidan Smyth

Dealt with me promptly and provided me with the most cost-effective option consistent with my requirements. Very pleased and thank you.

We are rated 4.9/5 based on 1129 independent client reviews.
To read more of our independent client reviews click here →
4.93 / 5 Average
1,222 Reviews
Overall Rating
Really, really helpful! Stopped me from signing up with an unhelpful company, and did basically all of the legwork for me in signing up with the right one. I can't have been the most helpful client as I'm 19 and only just started looking into it last week, but he took all the questions in stride! Put up with me turning to ask my dad questions every 2 minutes as well. I was helped by 2 workers; Sam and Nick. Thank you very much to both!
L Finch
Overall Rating
Good communication and follow ups. Friendly. A thorough research for my insurance needs.
Overall Rating

Sam Barr-Worsfold was very helpful and provided excellent customer service. Sam discovered I was paying too much premium for my current cover. Sam recommended and helped moved to a new cover with lower premium that provided the level of cover (terms required stated in the provider's policy) I wanted. I recommend highly recommend Sam and Drewberry Insurance. Thank you Sam.
Overall Rating
Thorough, knowledgeable and great communication
Overall Rating
Went through each policy in detail and made sure I was getting the correct one for me