Be wary of pension scams, warns Insolvency Service

The Insolvency Service has urged people to be wary of pension scams, after revealing almost 3,750 people have been targeted by companies closed down for pension misuse since 2015.

It has applied for winding up orders for 24 companies after they were found to have carried out a form of pensions misuse, which can range from pension trustees not performing their duties adequately to convincing people to give them access to their retirement savings.

Last year the average victim of a pension scam lost £91,000 and Consumer Minister Kelly Tolhurst urged people to do their research and seek independent advice if a company or individual contacts them to suggest making an investment from their pension. She added, "Government continues to work closely with the Insolvency Service, who are working to clamp down on rogue companies targeting vulnerable people," noting anyone who thinks they may have been a victim should contact Action Fraud UK.