On the go: The government has cautioned against savers making hasty alterations to pensions, warning that rash decisions motivated by fears surrounding the coronavirus crisis and market crash may be exploited by scammers.
Acknowledging that people are concerned about the impact of the crisis on their future finances, Guy Opperman, minister for pensions and financial inclusion, said: “I want to urge savers to stay calm and avoid making any knee-jerk changes to their investments or pensions.”
Those considering making alterations to their pensions should first speak to a trusted adviser, he said, with organisations such as the Pensions Advisory Service and Pension Wise able to offer impartial guidance to ensure savers are aware of the potential pitfalls of pension transfers.
“This is a very worrying time for everyone, and the impact of the coronavirus on financial markets is adding to the stress,” said the Money and Pensions Service’s Charlotte Jackson.
“We know scammers will try to take advantage of the situation, so you should be suspicious of any unexpected approach. Before you do anything, it’s worth getting independent guidance or advice.”
While a report last week by LCP seemed to show a marked decline in pension transfer activity, with the number of requests for defined benefit transfer value down by more than three-quarters since the start of March, regulators and the government are keen for people to remain calm and vigilant when making decisions, emphasising that pensions remain relatively safe long-term investments.
