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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