Warning about pension scam

Police are warning people not to fall foul of a pension scam.

The scam takes the form of cold calling or unsolicited texts from a contact centre who will offer the chance to release equity from your existing pension fund before the normal private pension early retirement age of 55.

False claims of ‘better rates of interest’ or a cash incentive to transfer your funds are made and the taxation implications of removing your funds from your existing pension provider are not explained.

Detective Sergeant Ian Paterson, of GMP’s Economic Crime Desk, said: “We want as many people as possible to be aware of this scam.

“When these type of companies contact you they will not fully explain to you about the fees charged or the fact that by removing your funds before 55 there is a liability for tax.

“The person contacting you will often not be registered to give independent financial advice and your remaining funds may be transferred overseas outside the jurisdiction of UK regulatory bodies.

“If considering making alterations to your pension arrangements you should seek independent financial advice.”

If you think you are the victim of of Pension Liberation Fraud you should report it to Action Fraud by telephone on 0300 123 2040 or online at www www.actionfraud.police.uk