Experts from the National Trading Standards (NTS) scam team recently reported that people in the UK with pension pots are being targeted by scam artists who are intent on stealing nest eggs people have spent years building up for retirement. Retirement planning specialists in Chester, Manchester and other major UK cities help people plan for their future, but some experts like wealth managers can also offer independent financial advice to help avoid scams.
The recent report stressed that even individuals who consider themselves to be financially astute can fall victim to a pension scam, and that each day more stories of successful crimes hit the headlines. According to experts, a common scheme that pension holders should be aware of is known as the “Tax Loophole”.
The scam involves fraudsters promising pension savers access to their pensions early via loopholes or loans. However, such scams can land savers in hot water with Her Majesty’s Revenue and Customs (HMRC) and incur a hefty tax bill. If a saver takes all or some of their money from their pension, even if it is stolen by scammers, before they reach the age of 55, the HMRC can penalise them by up to 55% on the withdrawal. As a result, if scammed, a person can face losing all their savings and a tax bill on top.
Savers are warned to be wary of offers which guarantee higher returns on their pension savings and attempts to use high-pressure sales tactics like limited time offers.