WORTHING, England, June 30, 2015 /PRNewswire/ --
Retirement Advantage is warning retirees to be alert to approaches by fraudsters, after its new research found that one in five over 50s may have been targeted by scammers looking to trick people out of their savings.
The survey, conducted by YouGov, found that 17% of over 50s and 20% of over 55s have been approached by a company offering to help them access their pension early, for instance through legal loopholes or a one-off investment opportunity. More men than women report being targeted, with 22% of men aged 50 or over saying they had been approached compared to 10% of women.
The most common method of contact was by telephone (50%), followed by post (24%) and then email / online (23%).
Andrew Tully, pensions technical director at Retirement Advantage, said: 'It is clear that there are already scammers preying on people who might like the idea of using the new pension freedoms to take large amounts of cash from their pension schemes. The scammers may be offering get rich quick schemes or even early access before age 55 to trick people out of their hard-earned savings. Retirees need to be on their guard: if an opportunity sounds too good to be true, it almost certainly is.
'It is vital that the Government and financial industry work together to ensure all practical measures possible are in place to protect people from these scams. We need to make people aware that there are fraudsters hoping to trick them out of their money. Hopefully Pension Wise will help educate people around the risks, but professional financial advice will be crucial to ensure people understand the options available to them and make the right decision for their personal circumstances. The Government also needs to make life difficult for the scammers, and punish those found guilty of preying on innocent victims.'
Retirement Advantage is supporting the ABI's 'Your Retirement, Your Choice' campaign which aims to help customers understand their options and how to avoid being the target of pension scams: https://www.abi.org.uk/Insurance-and-savings/Products/Pensions/Pension-freedom-your-choice/Caution
To help retirees feel equipped to deal with potential scammers Retirement Advantage is highlighting five key things to be alert for:
- An offer to help you access your pension savings before age 55. It is only possible to do this in rare situations, for instance if you are very ill, so be careful and always check with your pension provider.
- A recommendation to take a large amount of money, or your whole pension pot, in a lump sum and invest it. There are significant tax implications if you take lots of your savings in one go, so check the tax position before you make any decisions.
- Warnings that the deal is limited and you must act now. Choosing the right retirement income product(s) is a big decision and shouldn't be done quickly or under pressure.
- An encouragement not to get professional financial advice or talk to Pension Wise. An adviser would be able to explain the rules and tax implications of different options and help you make the best choices for your personal circumstances, so be very suspicious if this is discouraged.
- Contact by somebody who is not on the Financial Conduct Authority (FCA) Register. The Register is a public record of all the regulated firms and individuals in the financial services industry, including retirement income providers and investment companies.
Notes to editors
- Research was conducted by YouGov Plc. The survey was carried out online between 20 May and 25 May 2015. The total sample size was 1009 adults. The figures have been weighted and are representative of all those aged 50+ with some form of DC pension and not in retirement (aged 50+).
About Retirement Advantage
Previously known as MGM Advantage and Stonehaven, Retirement Advantage can trace its roots back to 1852. In 2015, the company changed its name to Retirement Advantage, merging the equity release and retirement income divisions.
The company specialises in retirement, with award-winning expertise developing products which can help people make the most of their retirement savings and/or the value in their property.
Products include the Guaranteed Annuity, providing the best possible guaranteed lifetime income for individual circumstances; the Flexible Income Annuity, which offers the opportunity for retirement income to grow; and equity release products, which allow homeowners the opportunity to release cash from their home without having to move or give up ownership.
Our Equity release products are lifetime mortgages. To understand the features and risks ask for a personalised illustration.
Inflation will reduce how much your income is worth over the years. The value of Investment linked Annuities can fluctuate. Income could go down as well as up. Withdrawals in excess of growth in the fund may result in the fund running out quicker than expected. Taxation rules and regulations may change in the future.
Retirement Advantage is financially strong, as rated by AKG (an independent company that specialises in providing ratings for the financial services industry).
Retirement Advantage is the retail brand for a group of companies which manages assets in excess of £1.8bn (as at December 2014).
For further information
Paul Keeble, +44(0)7833-085387, Paul.Keeble@retirementadvantage.com
SOURCE Retirement Advantage