Scammers are quick to take advantage when financial rules change.
A recent article in The Guardian has highlighted a warning about fraudsters targeting people who are worried about upcoming changes to inheritance tax and pensions.
The scam is simple but dangerous. Someone contacts you claiming they can help move your pension into a special scheme, often overseas, so it avoids being caught by future inheritance tax rules.
The problem? The scheme may not exist at all.
Instead, it could be a way for criminals to get access to your pension savings.
Why this scam may sound convincing
Many people have heard that pensions are expected to form part of someone’s estate for inheritance tax purposes from April 2027. Understandably, this has led to questions and concern, particularly for those thinking about how best to pass money on to their family.
Scammers use that uncertainty.
They may talk about “loopholes”, “pension liberation”, “safe havens” or “one-off opportunities”. They may offer a free pension review, promise high returns, or say you need to act before the rules change.
The aim is to make you feel anxious enough to move quickly, without taking time to check whether the offer is genuine.
Red flags to watch for
Be cautious if you receive:
- an unexpected call, email or message about your pension
- an offer to move your pension overseas
- promises of a special inheritance tax loophole
- pressure to act quickly
- guaranteed or unusually high returns
- instructions not to speak to your current pension provider or adviser
- coaching on how to answer questions from your pension provider
Cold calling about pensions is illegal, so any unexpected pension contact should be treated with suspicion.
How to protect yourself
The most important thing is to pause.
Do not be rushed into transferring your pension or signing paperwork. A genuine professional will not pressure you into making a quick decision.
Before acting, check whether the firm is authorised by the Financial Conduct Authority. You can also speak to your existing pension provider, use guidance from MoneyHelper, or seek advice from a regulated financial adviser.
If an offer sounds too good to be true, or promises a simple answer to a complex issue, it should be treated with extreme caution.
What to do if you’re concerned
If you think you may have been contacted by a scammer, stop communication and do not share any further information.
Contact your pension provider as soon as possible and report your concerns to Report Fraud.
A final thought
Pensions and inheritance tax can be complicated, especially when rules are changing. That is why scammers see an opportunity.
If someone contacts you unexpectedly with a clever way to “protect” your pension, take a step back.
When it comes to your retirement savings, a few minutes spent checking could protect years of hard-earned money.
