UK pension savers lose £31m to scammers since 2017

The British watchdog said that although those were the official figures, the real amount lost to scammers was likely to be much higher as some savers don’t recognise scams.

Individual losses from pension scams reported to the Action Fraud national reporting centre ranged from less than £1,000 pounds to £500,000, and that the typical victim was a male in their 50s.

“During these uncertain times, it is more important than ever to defend your lifetime savings from scammers,” said Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA speaking about the economic crisis that has come due to the coronavirus pandemic.

Last month, MPs said they were launching an inquiry into pension scams after a relaxation in pension rules in 2015. So-called pension freedoms were introduced five years ago which meant over 55s are able to choose how they spend their savings, rather than being forced to buy annuity, which gives fixed income for life.

As a result of the rising dangers of scams, the regulators launched on Tuesday the ScamSmart campaign and teamed up with football commentator Clive Tyldesley.