If you have concerns about your investment interactions, do your checks

It's great to be back. I don’t know how anyone else feels, but I am glad to be back at my desk, and I am more than ready for 2025! 

I have already hit the ground running and was back in my office early doors on Monday. Christmas feels a distant memory. 

 

I am positive about the New Year but need to start the year with a warning. This is not going to be a doom and gloom post but more of an opportunity to give a shout-out. If someone calls you with a financial idea that seems ‘too good to be true’ it most probably is. No matter how tempting, before you say yes, talk to someone in our profession first. We can likely see through it. 

On January 1st, Which Trusted Trader wrote an interesting short article on the year ahead and ways to take control of your pension. However, the piece that caught my eye was the warning about pension scamming! In 2023, there were 559 reports of pension fraud totalling £17.8 million making an average of over £30,000 lost from each pension pot. 

 

Sadly, I have previous experience of a client being scammed, not for their pension, but in a ‘quick win’ style approach which was devastating. The initial approach was friendly obviously but ended up becoming intimidating and no doubt frightening for the person involved. 

 

These are some of the things to watch out for and to check in with your adviser or even a trusted friend before making any knee-jerk decisions. 

1. Unregulated investments of your pension: Guarantee of high returns but are high-risk 

2. Offers to release your pension before you’re 55: Not only are you at risk of losing your pension pot, HMRC may also fine you in addition. 

3. Time-limited offers: Never feel under pressure to make a decision today. This is usually a red flag. There is a useful website where you can check out companies that have done this in the past and been reported to the Financial Conduct Authority (FCA)  

4. Unsolicited calls: Offering a free pension review. Reputable advisers are unlikely to make an approach in this way. Ask for an email and contact details and check out the company or individual with the FCA first. 

If you have concerns about your investment interactions, do your checks and best of all talk to a financial planner or a trusted friend first. It may save you hugely in the log run. 

If you have concerns about your investment interactions, do your checks and best of all talk to a financial planner or a trusted friend first. It may save you hugely in the log run.