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£17.7m was lost to pension fraud in the UK 2023*
*Source: Action Fraud
It's easy to be scared by all the news we hear about fraudsters and scammers, and it can be easy to get caught out. However, just a few quick steps could save you from making an expensive mistake.
Warning signs
Remember the old saying: "if something sounds too good to be true, it probably is". Watch out for cold callers and high-pressure sales tactics. Fraudsters may well offer you:
- Early access to your savings
- A guaranteed return on your investment
- Unusual or unregulated investments
- Complicated structures where you can't easily tell where your money will be invested
- Schemes where multiple organisations all take a, potentially high, fee
Common pension scams
In the UK you can only access your pension savings from age 55 (rising to 57 in 2028), unless there are special circumstances, like ill health or a protected pension age. Early release scams, sometimes called pension liberation or pension loans, encourage you to transfer your benefits to an alternative arrangement that the scammers say will let you get your money sooner. You can be charged enormous fees, face massive tax bills or even have your money stolen outright.
If you're contacted out of the blue by someone offering you a free pension review, it could well be a scam. These reviews often encourage you to transfer your pension to alternative, potentially high risk, investments. Because they can be sold as long-term investments, it could be some time before you realise that something is wrong.
Protecting yourself
Scams are typically asking you to move your money from your existing provider to a new alternative. Before transferring your benefits to another investment, check what you're doing. The Financial Conduct Authority (FCA) regulates financial services in the UK. Their leaflet offers helpful tips and you can use their ScamSmart Investment Checker to quickly check whether any organisation approaching you about your investments is on the level, and learn more about how to protect yourself.
As a USS member, you have choices if you leave the scheme or when you retire or take your savings. We'll share information about USS and your options, but we'll never encourage you to take one option over another. You should always choose what's best for your individual circumstances, and if you're unsure, seek independent financial advice from an FCA regulated adviser.
We'll never telephone you unexpectedly. If you get a cold call from someone claiming to be from USS, hang up the phone. If you're ever worried about whether a message about your savings is really from USS, you can contact us to check.
You can learn more about how we’re regulated on our how we're governed page.