The UK government’s Department for Work and Pensions (DWP) has now introduced a new set of laws developed to prevent scams related to pension transfer schemes.
Scam artists and other fraudsters often make use of pension freedoms and an individual’s legal right to transfer pensions to another scheme as part of ploys to persuade victims into relocating their entire life savings into a fake pension.
The DWP has now acted to protect consumers from such scams. It has set out rules that state savers will no longer be able to invoke their personal right to transfer on each single occasion, only when they are moving their pension pots into master trust schemes, public service-type pension schemes or collective money purchase-style schemes.
Scheme managers and trustees and will both be given the power to pause or prevent a pension transfer request, employing an ‘amber’ and ‘red’ flag system. Flags can be raised under a number of circumstances – for example, if a consumer has been pressured to make a transfer or not responded to information requests regarding a suspicious transfer.
UK savers seeking assistance with retirement planning in Shropshire, Cheshire and other parts of the country often look to wealth management firms for guidance. Along with providing unbiased financial guidance, wealth managers can also advise on pension pots, estate planning and other elements of a dedicated retirement strategy. They can also offer expert assistance on malicious scams, helping consumers avoid fraudulent attempts to part them from their hard-earned money.