More trustees recommending regulated advice

The number of pension trustees who are encouraging members to take regulated financial advice has increased by 9% over the past year. Two in five (39%) pension trustees surveyed are actively helping members seek regulated financial advice. Half of trustees surveyed by Wealth at Work and the Pensions Management Institute provided financial education with a similar number (48%) providing or facilitating financial guidance for members at retirement. Over nine in ten (92%) of the trustees surveyed shared fears that their members approaching retirement will be targeted by scammers. Jonathan Watts-Lay, director of Wealth at Work, said: “Pension scams are a persistent problem which have a devastating impact on those who become victims. The strain on household finances caused by the cost-of-living crisis could mean that some members are more vulnerable than ever this year. “With almost a quarter (22%) of UK adults having reported being approached by scammers offering free pension advice or a free pension review, investment opportunities, or a tax refund between March and May this year, it’s clear that these fears are well founded. Our research shows that trustees are well aware of this situation and have grave concerns for their pension scheme members.” One of the main areas for concern shared by Wealth at Work were pension transfers. Around 97% of defined benefit pension transfers were raising one or more scam warning scams in July, according to the XPS Pension Group’s Scam Flag index. The number of flags was at an all-time high in May. XPS said the rise was primarily driven by the overseas investment amber flag, which appeared in 85% of cases which had raised a flag. Wealth at Work and the Pensions Management Institute surveyed 64 pension trustees between January and April.

More trustees recommending regulated advice

Related items

News from Twitter