Government plans to ban pension cold calls
Scams and cold calls from fraudsters are facing a ban by the government, to help prevent UK residents losing money when they are faced with fraudulent investment opportunities.
According to ministers, eight such calls are made every second made to people in the UK, which results in £19m being lost every year. Legitimate advisors and independent financial planning companies say the pension world has been “plagued” by such calls for years. However, a ban may be enforced that could result in a fine of up to £500,000 being levied.
The ban would mean that a business would not be permitted to call an individual unless it has a prior connection to them. Although it will not cover emails and text messages, the government will conduct further analysis to include all electronic communications.
The increase in scam calls follows the decision by the government to allow savers to withdraw cash from their pension pot from the age of 55 and over. When the scheme was first launched, people were drawing an average of £20,000, although data indicates that the figure is now closer to £10,000. The scams often start with a cold call promising that money will be available before the age of 55, and that a free pension review is available. According to the Treasury, this is often followed by the lure of investments in ethical projects or hotels.
Wirral residents are recommended to seek independent financial advice before agreeing to any pension-related transaction.
