For every hard-working individual who has built up a pension pot to fund their retirement, there is a criminal trying to scam their way into stealing some of it for themselves. Pension funds are often the second largest source of wealth behind home purchases and, as a result, are a tempting target.
Sadly, scams are not new to pensions. These are two of the most common forms.
Pension liberation
The victim is under the minimum age at which benefits can be drawn legitimately (age 55) and is promised access to their funds early, albeit subject to hefty charges.
Investment scam
The unsuspecting target is persuaded that current, legitimate, regulated pensions are underperforming and greater returns can be achieved by switching pension funds to a new vehicle. The new product invests in unregulated assets, promising great and sometimes guaranteed returns which instead pay inflated commissions/fees to the organisers and rarely, if ever, return the investment yield or the invested capital.
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