NatWest warns ‘watch out’ for cruel pension scam targeting Brits’ retirement savings | Personal Finance | Finance
NatWest is warning pension savers to beware of fraudsters targeting their savings. In 2024, one in seven UK adults faced an attempted pension scam. Data from LV= indicates that such scams cost up to four million people money last year.
Listing the scam on its website as one to “watch out for”, the bank said a pension scam typically involves a criminal targeting someone who has access to their pension, and involves encouraging them to move the funds. Generally, you can only start withdrawing money from a pension at age 55, making this demographic the most at risk.
NatWest explained that scammers use different methods to target your pension before sharing the four most “common” tactics to watch out for. Firstly, it warned people to be wary of unexpected calls. The bank said: “There has been a Government ban on cold calls regarding pensions, so you shouldn’t receive them unless you have asked them to.”
One key tactic used is offering you early access to your funds. NatWest explained: “Someone offering a way to access your pension before you retire could be a scam. Even if it’s legitimate, early withdrawal could result in charges. Check with your pension provider using contact details on their website.”
They may also frame the scam as an investment opportunity.
NatWest said: “If someone calls you out of the blue offering you an investment scheme with attractive returns for your pension pot, then it’s likely to be a scam.”
Finally, pushy ‘advisors’ are another red flag to be wary of. In these scenarios, you may be pressured into making a quick decision about a ‘new’ scheme or encouraged to transfer your pension quickly.
To help retirement savers avoid losing out to cruel fraudsters, NatWest shared five “top tips”.
- Stay calm: If you get calls offering early access to your pension, don’t feel rushed or pressured to respond.
- Don’t commit: Always seek independent financial advice before making decisions.
- Stop the call: If you feel pressured or if the caller won’t take no for an answer, end the conversation.
- Listen to your doubts: If you think an offer sounds too good to be true, it probably is.
- Do your research: Check if the person or company is legitimate by looking at the financial services register or calling the Financial Conduct Authority.
