Covid-19 has increased the risk pension savers will feel hurried to make snap decisions they wouldn’t have made before the pandemic.

The virus has brought volatility to markets, uncertainty over employment and increased isolation as the UK adjusts to unprecedented restrictions on people’s travel and work.

This makes knee-jerk, rushed decisions over finances more likely and creates an environment perfect for scammers.

We want schemes to urge all members to avoid rushed decisions and provide them with clear, relevant information, at the right time.

For the foreseeable future, we also expect members requesting a transfer from a DB scheme to be sent a template letter telling them what to consider before making a decision and where they should go for impartial guidance.

The letter tells members that pensions remain a safe, long-term investment for retirement, and transferring funds is a serious decision; to visit the ScamSmart website to check the firm they are dealing with is regulated and check if what they’ve been offered is a known scam or has the signs of a scam; that transferring out of a DB pension into a different type of arrangement is unlikely, in most cases, to be in their best long-term interests; and to get guidance or advice before making a decision from The Pensions Advisory Service, part of the Money and Pensions Service offering free specialist pensions guidance.

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