Consumer groups and industry experts have warned that uncertainty around the proposed changes could create new opportunities for fraudsters, with criminals using headlines about Inheritance Tax (IHT) to persuade people to make rushed decisions about their pensions.
If retirement is on the horizon, this is a good reminder that major financial decisions should never be made under pressure.
Why are scammers focusing on pensions?
For many people approaching retirement, pensions represent their largest financial asset.
Changes announced by the government mean that, from April 2027, unused pension funds are expected to be brought within the scope of Inheritance Tax in many circumstances.
Scammers are already using these headlines to create convincing stories. You may receive calls, emails or online adverts suggesting you need to move your pension urgently, withdraw money before the rules change or transfer your savings into a ‘tax-efficient’ investment.
These tactics are designed to create a false sense of urgency.
What should you watch out for?
Scammers often sound knowledgeable and professional.
They may claim to be pension specialists, tax experts or investment advisers. Some even impersonate genuine financial firms using cloned websites, fake email addresses or convincing documentation.
Common warning signs include:
- Pressure to act quickly
- Promises of guaranteed tax savings
- Unexpected contact about your pension
- Offers that seem too good to be true
- Requests to transfer money or share personal information.
If something feels rushed or uncomfortable, take a step back.
Why does professional advice matter more than ever?
The years leading up to retirement are often when the biggest financial decisions are made. You may be considering when to access your pension, how much income you’ll need and how best to provide for your family in the future.
Good financial planning looks at the whole picture. It isn’t about reacting to headlines or making decisions based on speculation. Your financial planner can help you understand how proposed rule changes may affect your own circumstances and recommend the most appropriate course of action without unnecessary pressure.
How can you protect yourself?
A few simple habits can significantly reduce your risk.
- Be cautious of unexpected contact about your pension
- Never feel pressured into making immediate decisions
- Check that anyone offering financial advice is authorised by the FCA
- Speak to your financial planner before transferring or withdrawing pension savings.
Take your time and seek trusted advice
The proposed IHT changes may prompt many people to review their retirement plans, and that’s no bad thing, but important financial decisions deserve careful consideration, not rushed reactions.
If you’re wondering how the proposed rules could affect your retirement or your family’s future, your Finli planner can help you understand your options, avoid potential scams and make decisions with confidence.
The value of investments can go down as well as up, and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority does not regulate Will writing, tax and trust advice and certain forms of estate planning.
