Close to a third of adults missed the most obvious pension scams in a survey testing people's understanding of fraudsters' tricks, and 79 per cent said stricter rules and checks are needed to protect savers.
In a study, the Pensions and Lifetime Savings Association provided more than 2,000 people with a selection of scenarios that might be pension scams; 29 per cent of these missed the most obvious pension scams.
Just under half of respondents thought that “an adviser who tells you to take actions which you find out are not in your best interest” could be a pension scam; and only 43 per cent thought being “advised to invest your pension fund into an investment that means you end up paying a huge tax bill” described a pension scam.
Four-fifths of those surveyed said stronger rules and checks are needed to ensure that pension pots are safe. However, 28 per cent felt such checks were unnecessary, believing people should be able to access their money as and when they like.
The PLSA said the findings are concerning as 17 per cent of savers say they have been contacted by a company other than their provider to discuss making changes or transferring their pension.
