Finance investigators warn savers to beware of pension transfer scheme

Finance investigators warn savers to beware of pension transfer scheme

Finance investigators warn savers to beware of pension transfer schemes after several people suffered huge losses

  • Off-shore firms persuade workers to use pensions to invest in dubious ventures 
  • It is estimated that such schemes are costing British savers up to £4billion a year
  • They are on the rise as since 2015 savers have been able to access a quarter of their pension pots tax-free from the age of 55

Savers have been warned to avoid ‘too good to be true’ pension transfer schemes after a number of victims have been left with huge losses.

Investigators found numerous off-shore firms have persuaded workers to use pension money to invest in dubious or high-risk ventures.

It is estimated that such schemes, many operating illegally, are costing British savers up to £4billion a year, the Times reported. 

Investigators found numerous off-shore firms have persuaded workers to use pension money to invest in dubious or high-risk ventures (stock)

They are on the rise as since 2015 savers have been able to access a quarter of their pension pots tax-free from the age of 55.

The Financial Conduct Authority said tackling the scams was a key priority.

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