Regulators issue warning over Covid-19 pension scams

The Pensions Regulator and the FCA, supported by the Money and Pensions Service (MaPS), say fears over the impact of the pandemic on markets and personal finances may make savers more vulnerable to scams or making a decision that could damage their long-term interests.

They said that as a result of the coronavirus outbreak, markets have been volatile and are likely to remain so for a while.

Throughout this period, the regulators have pledged to tackle any additional risks arising from the current uncertainty.

Charlotte Jackson, head of pensions operations and consumer protection at MaPS, said: “This is a very worrying time for people. For those on the point of retiring, the impact of the virus on the financial markets and therefore on pension savings has been damaging. If you are in a workplace pension, investments are designed to deliver over the long term with measures in place to reduce the risks faced by investors as they approach retirement.

“However, if you have chosen to invest your retirement savings yourself or were looking to retire soon then you may find yourself having to accept a lower income or retiring later. The key thing is to take as much time as you can and try not to panic."

Mark Steward, executive director of enforcement and market oversight at the FCA, added: “Fraudsters will exploit the coronavirus to prey on anxiety and fear of savers and investors, especially those who may be vulnerable. That’s why we’re urging anyone who is thinking about transferring their pension to check who they are dealing with and only use firms authorised by the FCA."