Pension scams warning

The Financial Times quoted figures from the pensions regulator to the effect that £495 million was lost to pension frauds in the first half of 2014.

But the regulator admits the real figure was probably a lot higher since it is not told about all losses. Pension providers have been warning that the scope for fraud will rise from April when people can direct the provider to pay their pension fund money wherever they like.

Some newspapers have run reports about people investing pension fund money in car parks on the basis of promised high returns. We say, as the regulator does, that you should only ever take investment advice from someone who is authorised to give it by the Financial Conduct Authority. Otherwise, you have no protection and no entitlement to compensation if it goes wrong.