The Financial Conduct Authority (FCA) is warning that cost of living concerns could drive some pension savers into scammers' clutches. A quarter (25%) of people said they would consider withdrawing their pension savings earlier than planned to cover living costs, potentially making them vulnerable to criminals.
The FCA is warning that criminals are using ‘misdirection’ tactics to trick victims, including promising them a better lifestyle in their later years. In reality, victims can end up losing their life savings and having their retirement dreams shattered - if a consumer deals with an unauthorised firm, they will not be covered by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS) if something goes wrong.
The FCA commissioned a survey of more than 1,000 people aged 40 and over with workplace and private pensions, to uncover how scams could affect them.
