Poll: 85% think employers have a responsibility to raise awareness of pension scams

Money

Employee Benefits poll: The majority (85%) of respondents think that employers have a responsibility to raise employee awareness of pension scams.

A straw poll of www.employeebenefits.co.uk readers, which received 41 responses, also found that 15% of respondents feel that it is not the job of the employer to inform staff about pension scams and the potential tactics that could be used.

On 14 August 2018, The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) launched a joint awareness campaign to raise understanding of pension scams and the tactics employed by potential scammers.

The ScamSmart awareness campaign follows on from research conducted by the regulatory bodies in July 2018. This found that 32% of pension members aged between 45 and 65 would not know how to check whether they are speaking with a legitimate pensions adviser or provider, and a further 12% state that they would trust an offer of a free pension review from someone claiming to be a pension adviser. The research also found that pension scammers steal, on average, £91,000 per victim.

The awareness campaign is making use of TV, radio and social media to urge pension members to visit ScamSmart prior to transferring any funds. The campaign warns against pension fraud methods, such as cold calling, unexpected contact, promises of guaranteed high returns and downplayed risks, offers of unusual or overseas investments that are not regulated by the FCA, pressurising for quick decisions and claims to unlock money from a member’s pension.

TPR and the FCA are recommending pension members reject unexpected pension offers, check who they are dealing with on the FCA Register before changing any of their pension arrangements, refuse to be rushed or pressured into a decision and consider getting impartial information and advice.

What do you think of the Equality and Human Rights Commission’s recommendation for mandatory reporting around ethnicity and diversity in the workplace? Have your say in our latest poll…