Pension cold calls on the rise following reforms
Nuisance calls to over 55s increasing
People approaching pension age are receiving far too many cold calls regarding their pension pots following this year’s reforms, according to the Information Commissioner’s Office.
So far, the ICO has received more than 1,000 complaints about cold calls and texts this year.
Talking to Radio 4’s Money Box program, Steve Eckersley, head of enforcement at the ICO, said: "We always thought [the reforms] could lead to an increase in the number of unlawful calls which are made. We’re hoping it won’t match the scale of the calls made in relation to PPI.”
Pension fraud dangers
Under the new pension freedoms, which came into force on 6th April 2015, anyone over 55 can withdraw any amount from their pension and use these funds as they wish. This is an appealing opportunity to fraudsters, who could trick older people into parting with a huge chunk of the money they’ve saved up over their working life.
Which? research has found that a third of over-55s had been contacted about their pension by potentially fraudulent companies. Only half said that they’d be able to correctly identify a legitimate investment opportunity, with four in ten thinking they might be tricked if approached.
Two in five of the over-55s surveyed were contacted in the months before the reforms came into effect. Only one in five of these respondents said they’d been contacted in the whole of 2014, so there’s been a clear step up in efforts to get in touch with people about their funds.
If you receive a cold call (the most common method), text message, letter, or email promising you an investment opportunity, it’s probably best that you simply hang up or ignore the contact. It’s unlikely to be legitimate unless you have requested to be contacted by a specific financial services provider – and it’s that company who are trying to get in touch with you.
If you are contacted completely out of the blue, you should be asking yourself if you can really trust the person on the other end of the line. The answer is most likely no.
Keep on top of how your pension is performing with Plans
What to do if you’re contacted
If you’re getting lots of cold calls from people offering you ‘investment opportunities’, you can register with the Telephone Preference Service. Once your number is registered, unsolicited calls should cease (though this takes 28 days to come into force).
If they don’t stop calling, you can complain to TPS. If the calls keep coming, you can report the calls to the ICO, who can issue fines of up to £500,000 for serious contraventions of the rules by telemarketers.
The Pensions Advisory Service is available on 0300 123 1047 if you’re seeking guidance on what to do with your pension pot. If you believe you may have accepted an offer from a cold-caller that was fraudulent, Action Fraud has an online scam reporting tool. Alternatively you can call Action Fraud on 0300 123 2040.
Keep on top of how your pension is performing with Plans
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