The warning signs of a pension scam

Scams involving pensions are among the most financially devastating types of fraud: victims lost an average of £47,000 in 2025, according to Action Fraud.

A recent survey by pensions company Standard Life indicated that 62% of people felt confident they could spot a pension scam.

Yet it found that common misunderstandings around pension rules could open the door to scammers.

In addition, it has warned that some of the ways in which people checked pension firms could be easily circumvented by crooks.

Here, we reveal the red flags and how to spot them yourself.

People failing to identify scam warning signs

Cold calling about pensions has been banned since 2019, so any cold call about pensions can be treated as a scam.

Yet Standard Life found 60% of respondents didn't know when tested that pension providers or advisers aren't legally allowed to cold call people about pension opportunities or reviews. 

And 40% of people either wrongly believed that you can withdraw money from your pension at any age or said they didn't know. The earliest you can access money saved in a private pension is 55 (rising to 57 in 2028).

Some 73% also thought that if a company appears on the Financial Conduct Authority register, any investment it offers is guaranteed to be safe, or they were unsure.

The FCA, the industry regulator, regularly issues warnings about firms claiming to be authorised, or impersonating other authorised firms, but it may take time for them to be detected. So you'll need to check that the firm's contact details match what's on the register.

• Find out more: When can I retire?

Beware increasingly sophisticated scams

Savers now have to be wary of more sophisticated scams enabled by artificial intelligence (AI) or so-called ‘deepfake scams’.

The Pensions Regulator and the Society of Pensions Professionals have both recently highlighted the threat represented by deepfake impersonation (of a real person’s appearance, voice or mannerisms), fraudulent member or trustee instructions, malicious documents and AI-generated phishing.

Standard Life found that some people may be placing trust in factors that don't necessarily indicate whether a pension opportunity is genuine. 

In its research, 20% believed a professional-looking website and positive online reviews are reliable indicators that a pension opportunity is genuine, while 14% believed adverts on professional or social networking sites mean a company is trustworthy and can act in their best interests.

Donna Walsh, pensions expert at Standard Life, warned: ‘Pension scams do not always look like scams. They can come with convincing websites, positive reviews, familiar names and paperwork that appears genuine, which is exactly why they can be so dangerous.

‘What stands out from our test is that many people could benefit from greater awareness of some key pension rules and warning signs. That's important because understanding how pensions work can help people make more confident decisions and better protect the savings they've worked hard to build.’

The imminent changes to the inheritance tax (IHT) treatment of pensions will see some savers reassessing their retirement plans and considering how best to pass on wealth to future generations. 

Fraudsters are often quick to exploit periods of change and uncertainty to come up with new ways to steal your money, so the period up to April 2027 and beyond could see a proliferation of IHT-based scams. 

Red flags to look out for

It's always important to remind yourself of the warning signs, to protect your nest egg from scammers in the face of increasingly sophisticated tactics:

• Beware an unexpected call, email or message: Be wary if you're contacted out of the blue with the offer of a free pension review. Reputable advisers won't do this, and it's often the first s'tep in trying to persuade you to make a poor investment.  
• Time-limited offers can rush you: Don't be pressured into making a hasty decision on the spot or agreeing to the rapid transfer of funds. Research a firm before dealing with it. Check the FCA register of regulated companies and the FCA warning list of known scam firms.
• Offers to release cash from your pension before you reach 55: Not only could you lose some or all of your pot to scammers, but early access incurs a hefty tax penalty from HMRC.
• Investments promising guaranteed high returns: Don't let the temptation to boost your pension steer you towards unusual investments that are unregulated and high risk.
• Appearances can be deceptive: A professional-looking website, positive reviews or adverts on social media do not automatically mean an opportunity is genuine. Scammers know how to create a sense of credibility and are aided by AI tools, so it is important to look beyond first impressions.

Find out more: The latest scam alerts from Which?

Report any suspected scams

If any alarm bells have sounded, you can carry out independent checks for reassurance. You should avoid relying solely on information provided by the person or company that contacted you. 

Contact your pension provider directly using details you trust, check whether any firm or adviser is properly authorised using the Financial Conduct Authority’s company register, and verify that the contact details match. 

If you're still unsure, consider seeking guidance or regulated financial advice before making any significant decisions.

If you’ve been approached by scammers, even if you haven’t lost money, it’s important to report it. You can: 

• Call Report Fraud on 0300 123 2040 
• Call the FCA helpline on 0800 111 6768 

Find out more: How to report a scam