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Are you saving enough?
Find out how much your lifestyle could cost when you retire and how to work out if your savings are on track.
Are you saving enough?Tis the season to be cautious - stay safe from scams over the festive season!
With just over a month to go till Christmas, this may be one of the busiest times of the year for shoppers’ bank accounts.
Festive shopping, social outings and activities comprise many people’s spending commitments over the festive period. This grouped with the financial strain some will be feeling due to the hefty price tags in shops and supermarkets, and the pressure to spend more during the holidays, provides the perfect opportunity for scammers to strike.
Scammers are becoming more advanced and creative in the tactics they use to part shoppers and pension savers with their money. Often, fraudsters would prey on people’s anxiety for meeting financial demands and may promise no-fee loans and higher returns to savers. So, it is vital you stay alert throughout the busy festive period as fraudsters will use every opportunity they get to trick you. Watch out!
Increased risk of loan fee fraud persists
In December last year, the Financial Conduct Authority (FCA) warned of increased risk of loan fee fraud with this tendency likely to return over this year’s festive season too. The increased cost of living may be pushing many people to opt for unusual, short-term fixes like getting a loan with an upfront payment. The FCA has warned this is an extremely risky option and often is the sign of a scam so you must be on your guard.
Pension scams cost victims more than £26m
A recent freedom of information (FOI) has revealed that 1,595 pension scams were reported between 2020 and 2022. The Pensions Management Institute (PMI) said the pension scams have cost retirement savers a total of £26,420,172, an average loss of approximately £16,500. Equally worrying is the fact that a lot of pension crime goes unreported as people don’t like to admit to being duped.
Having some extra money to hand may seem exceptionally tempting, especially now we are on the threshold of another busy festive period that may be financially challenging for many people. More pension savers are expected to be interested in accessing their pension savings early because of the cost of living crisis. And scammers are likely to take full advantage of this.
They often play on savers limited knowledge and understanding of how a pension works by offering to help them access their retirement savings early. Remember, by and large most people can only claim money from their pension when they are 55 or older. Certain exceptions to this rule exist, of course, but generally speaking this is a rule of thumb for most pension savers in the UK. So, you must be wary and reject any of out of the blue offers, no matter how enticing they may sound.
So, how can you protect yourself?
Anyone can fall victim to a scam. Scammers are often charming, make attractive offers and sound like they have your best interests at heart. It’s crucial you’re able to recognise a scam and know what to look out for so you can protect yourself effectively.
Here are a few tips to help strengthen your guard:
- Always reject emails, calls and contact which are out of the blue. Callers may claim they’re from government-backed bodies to trick you into giving them information. Government organisations will never phone or text you.
- Check who you’re dealing with. If it doesn’t feel right, it probably isn’t and it only takes a few minutes to check. It could cost you your savings if you don’t.
- Avoid ‘investment deals’, ‘free pension reviews’ and early access to your pension before age 55.
- Don’t fall for professional-looking websites or brochures.
- Never feel rushed into making a decision. Take your time to check things over, even if you miss out on a ‘great’ deal.
Fraudsters are only getting smarter so you must stay vigilant.
Suspicious? Here’s what to do
If you’re suspicious, here are 3 things you can do:
- If you’re looking to turn to an independent financial adviser (IFA), make sure the financial adviser you choose is on the FCA approved register. To find
a list of IFAs in your local area visit Unbiased.
- Visit MoneyHelper for some useful information on the different types of scams and how to protect yourself
- Report fraud any time of day and night on the Action Fraud website or by calling 0300 123 2040 Monday to Friday 8am - 8pm. If you are calling from abroad call +44 300 123 2040.
Matt Riley
Manager
Matt joined Zedra Governance Limited (formerly PTL) in January 2008 having previously worked for Mercer Limited, Hazell Carr and Prudential.
As a Manager for the company's Birmingham Office, Matt’s responsibilities include working closely with Client Directors and individually liaising with Employers, Trustees and Members to ensure the smooth running of their pension schemes. Matt’s current portfolio of clients covers ongoing, paid-up and winding-up schemes. In addition, Matt has experience of schemes that have transferred or are in the process of transferring to the Pension Protection Fund and Financial Assistance Scheme. Matt also works closely with clients in relation to risk registers and internal controls.
Matt particularly enjoys resolving issues in a fair and pragmatic way ensuring that the right result is reached for the member or employer.
Sam Burden
Client Director
Sam Burden joined Zedra Governance (formerly PTL) in 2022. He is an Accredited Professional Pension Trustee (AMAPPT) and an Associate of the Pensions Management Institute (APMI)
Sam has more than 25 years’ experience in the pensions industry gained with WTW, KPMG, and Standard Life working with a wide range of pension schemes and sponsoring employers. His trustee appointments include DB, DC and hybrid pension schemes and he has experience of handling a broad range of projects relating to the management of pension schemes.
Beyond his pensions experience Sam is a former Birmingham City Councillor where he chaired the audit committee and a current charity trustee.
Payam Kazemian
Client Director
Payam Kazemian joined Zedra Governance Limited (formerly PTL Governance Limited) in 2021. He is an Accredited Professional Pension Trustee (AMAPPT) and an Associate of the Pensions Management Institute (APMI).
Payam has more than 17 years of experience in the pensions industry. Through his current role as a professional trustee, as well as previously as a pension’s de-risking and investment structuring expert at financial institutions including Goldman Sachs and Deutsche Bank, he has had overall responsibility for creating investment, de-risking, journey planning, and governance solutions for a wide range of UK DB pension schemes. He currently holds a number of board positions (as Chair of Trustees) and sole trustee in his professional trustee capacity. Payam has been involved with a number of pensions projects including pensions buy-in, pensions buy-out, GMP equalisation, investment strategy reviews, and dialogue with the pensions regulator. Payam looks to create and believes in a collaborative relationship between the sponsor, the trustee, and all other parties involved as this results in best member outcomes and helps deliver pragmatic solutions for scheme. Aside from his pensions experience, Payam holds a Ph.D. in Materials Science from the University of Cambridge.
