Pension scams are among the most financially damaging types of fraud, with victims losing an average of £47,000 in 2025, according to Action Fraud. Despite a recent survey by Standard Life indicating that 62% of people felt confident in spotting a scam, common misunderstandings about pension rules could leave individuals vulnerable.
Standard Life's research found that 60% of respondents were unaware that pension providers or advisers are not legally permitted to cold call about pension opportunities or reviews, a practice banned since 2019. Additionally, 40% either wrongly believed money could be withdrawn from a pension at any age or did not know the earliest access age is 55, rising to 57 in 2028.
The Financial Conduct Authority (FCA) register is also a source of misunderstanding, with 73% of people believing that a company's appearance on the register guarantees the safety of any investment, or being unsure. The FCA regularly warns about firms claiming to be authorised or impersonating others, noting that detection can take time.
Savers now face increasingly sophisticated scams, including those enabled by artificial intelligence (AI) and 'deepfake' technology. The Pensions Regulator and the Society of Pensions Professionals have highlighted threats such as deepfake impersonation, fraudulent instructions, malicious documents, and AI-generated phishing. Some people may also place trust in factors like professional-looking websites, positive online reviews, or adverts on social or professional networking sites, which scammers can easily create.
Donna Walsh, a pensions expert at Standard Life, stated that pension scams do not always appear to be scams, often featuring convincing websites, positive reviews, familiar names, and seemingly genuine paperwork. She emphasised that greater awareness of key pension rules and warning signs could help people make more confident decisions and protect their savings.
The period leading up to April 2027 and beyond could see a rise in inheritance tax (IHT)-based scams, as fraudsters often exploit times of change and uncertainty. Upcoming changes to the IHT treatment of pensions may lead some savers to reassess their retirement plans.