Scams and Pension Liberation Dangers
BEWARE: Predators stalk your pension! The Pensions Advisory Service, The Pensions Regulator, HMRC, Action Fraud and other government agencies have joined forces in an attempt to combat the threat posed to individuals by pension liberation fraud, and pension ‘scams’.
Pension liberation can take different forms but the main problem is where an individual transfers existing pension savings from their current scheme to a new scheme which allows access to some or all of their savings before age 55.
Except for very rare circumstances (for example in the case of terminal illness), this can result in severe consequences for the individual. Some schemes are being operated illegally and are targeting the financially vulnerable, and some schemes even though not strictly illegal can result in significant tax charges where an individual accesses their pension savings before age 55.
Many liberation schemes offer cash-backs or savings advances and can be packaged in different ways such as loans, however, such loans and payments are likely to be unauthorised payments and subject to severe penalties.
Cantwell Grove is committed to raising awareness of this issue with trustees and members, and doing all in its power to ensure that no one connected with or serviced by Cantwell Grove becomes exposed to the threats posed by pension liberation or pension ‘scams’.
Further detail regarding the danger of scams can be viewed in the leaflet that can be accessed via the following link to the Pensions Regulator website. Click here