UNISON is warning members to beware of ‘pension liberation fraud’.
“Our members needs to be aware of companies singling out pension savers and claiming that they can help cash in their pension early – even before the age of 55 in a number of cases,” says union pensions officer Alan Fox.
“This may seem attractive at face value,” Mr Fox continues, but he warns that it could lead to members “incurring a tax bill of more than half their pension savings.”
UNISON is not alone in identifying this growing trend, which has now become a key focus of investigation from the pensions regulator.
If you are approached by a company and offered a pension loan or cash incentive, it is possible that this could be a form of ‘pension liberation fraud’, which Mr Fox reports “is sadly very much on the increase”.
If you are contacted in this manner, please e-mail Mr Fox at firstname.lastname@example.org.