The Pensions Minister, Laura Trott, has highlighted giving savers the tools they need to spot online scammers as a “key priority”, as Pensions Age prepares to launch its campaign to shine a spotlight on pension scam concerns.

Throughout 2023, Pensions Age will be taking a closer look at concerns around pension scams, delving deep into the many issues and challenges the industry faces in tackling fraudsters.

Pension scams have become an increasing concern amongst industry experts, with The Pensions Regulator, Financial Conduct Authority and the Money and Pensions Service previously raising concerns over recent headlines that squeezed household finances may leave pension savers more vulnerable to scammers.

Indeed, Wealth at Work director, Jonathan Watts-Lay, highlights recent research undertaken in collaboration with the Pensions Management Institute (PMI), which revealed that a “staggering” 92 per cent of trustees have fears that members approaching retirement will be targeted by scammers.

“Unfortunately, scamming people out of their pension savings is a problem that has been around for some time,” he continued.

“However, the strain on household finances caused by the cost-of-living crisis could be seen as a window of opportunity for fraudsters, meaning that some people are more vulnerable than ever.

"In fact, almost a quarter (22 per cent) of UK adults reported being approached by scammers offering free pension advice or a free pension review, investment opportunities, or a tax refund between March and May 2022.”

Over the year, the magazine will therefore look to explore topics such as the evolving nature of scams and their psychological impact – how they manage to entice people, and the mental impact of falling victim of a scam.

Kicking off in the January magazine, Pensions Age editor, Laura Blows, will explore the different types of pension scams, how the cost-of-living crisis may increase the prevalence of scams, and the impact of scams for both the member and the pensions industry.

Readers will also be able to hear first-hand about the devastating consequences of losing your pension savings to a criminal and highlight the effective communication methods implemented by trustees, employees, regulators and providers to minimise this risk to their savers.

But solutions, as well as awareness, are needed, with the campaign aiming to highlight the vital role of politics and regulation in this fight against scammers, as well as the importance of collaboration and the steps that industry organisations can take to protect savers, sharing best practice methods from top experts.

Watts-Lay points to the potential role of financial education and guidance, for instance, suggesting that trustees and employers have a “key role in ensuring members make informed choices concerning their pensions”.

“Many years of pension savings can be lost in the blink of an eye so it’s time that trustees and employers do all they can to stop pension scammers in their tracks and put in place robust processes to support and protect members,” he added

Commenting on Pensions Age’s scams focus, Minister for Pensions, Laura Trott, said: “One of my key priorities is to make sure savers are armed with the tools they need to catch out duplicitous fraudsters who operate online.

“These crooks will use any means necessary to get at peoples hard-earned savings, and even the savviest among us could fall victim to these sophisticated scams.

“The landmark Pension Scheme Act introduced legislation to prevent pension savers from becoming a victim of a scam and I will continue to work closely with industry leaders so we keep your savings out of their pockets.”

“I am in full support of Pension’s Age campaign to shine a light directly on scammers so this year we can take down more criminals who want to part us from our retirement funds.”

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