Pension scams often start with unsolicited emails, calls, or messages. Fraudsters are now exploiting confusion over upcoming inheritance tax (IHT) changes by offering fake schemes to move pension savings overseas, claiming they can avoid the tax net.
New IHT Rules Target Pensions
From April 2027, money left in defined contribution pensions after death will be included in the estate for IHT purposes. This change has caused anxiety among savers, creating an opportunity for criminals, warns Standard Life.
How the Scam Works
The caller pitches a great deal: shift your pension savings into an overseas scheme to avoid IHT. But the scheme does not exist. Scammers use phrases like “pension liberation,” “loan,” “loophole,” or “savings advance.” They pressure victims with limited-time offers.
Donna Walsh of Standard Life explains: “With these changes, people become uncertain and confused. That’s exactly what scammers exploit.”
Red Flags to Watch For
- Unsolicited contact offering a free pension review or high-return investment.
- Pressure to act quickly.
- Requests to coach you on what to tell your pension provider.
Cold calling about pensions is illegal. Treat any unsolicited approaches with suspicion.
Protect Yourself
- Do not make rash decisions. Seek a second opinion.
- Use the Financial Conduct Authority’s online tool to check if a company is authorised.
- Consult a regulated financial adviser; MoneyHelper can help find one.
Mike Ambery of Standard Life advises: “Don’t be rushed into action, especially if someone pushes a ‘quick fix’ or plays on fear.”
If you suspect a scam, report it to Report Fraud.
