Retirees are being warned to watch out for scammers ahead of the liberalisation of pension rules next month, as the Financial Conduct Authority (FCA) said fraudsters will try to make the most out of the new regime.
Previously savers had to invest their pension pots in annuities, paying a guaranteed income each year for the rest of their life.
Under the new rules, they can take it all as cash, or invest it in other products – and fraudsters could try to take advantage of the change.
“This is exactly the time when people need to alert to the dangers of scammers offering opportunities that are too good to be true,” said FCA chief executive Martin Wheatley.
“Our ScamSmart campaign sets out the straightforward steps people can take to protect themselves and number one is if you get cold called about an investment opportunity, hang up.”