With the cost of living crisis in Britain only getting worse, more and more people are looking for ways to access their retirement savings early. Unfortunately, this has also created an opportunity for scammers, who are preying on these desperate individuals. In this article, we’ll take a look at how these scammers operate and what you can do to protect yourself.
The cost-of-living crisis in the UK
Sadly, this situation is being exploited by scammers who are preying on desperate people. They promise to help people access their retirement cash early but then disappear with the money. This is a terrible situation for anyone to find themselves in, and it highlights the need for people to be very careful when considering withdrawing money from their pension pots.
If you’re thinking of accessing your retirement savings early, make sure you get professional financial advice first. This will help you avoid becoming a victim of a scam.
The early retirement scam
As the cost of living continues to rise, more and more Britons are opting to access their retirement savings early. Unfortunately, this also makes them prime targets for scammers.
There are a few different types of scams that target early retirees, but they all have one goal in common: to steal your hard-earned money.
One of the most common scams is the promise of early retirement income. Scammers will often contact people who have recently retired or are close to retirement age and offer them a “too good to be true” deal on an income stream.
Of course, there is always a catch. The income stream may not be as secure as promised, or it may not exist at all. In either case, you could end up losing a lot of money.
Another common scam targets people who have taken early retirement packages from their employers. Scammers will pose as potential buyers for the business and offer an inflated price for the company.
Once again, there is usually a catch. The buyer may back out of the deal at the last minute, leaving the seller with nothing. Or, even worse, the buyer may be a fraudster who never had any intention of paying for the
How to avoid being scammed
With the cost of the living crisis affecting so many Britons, an increasing number are turning to their retirement savings to make ends meet. This has made them a target for scammers who are offering early access to retirement cash in exchange for a fee.
There are a few things you can do to protect yourself from being scammed:
- Research any company that approaches you about accessing your retirement cash early. Make sure they are legitimate and registered with the Financial Conduct Authority.
- Beware of any company that asks for upfront fees. You should not have to pay anything to access your own money.
- Do not give out your personal or financial information to anyone you do not know and trust.
If you are approached by a company that you suspect may be a scammer, you can report them to the Financial Conduct Authority or Action Fraud.
As the cost-of-living crisis continues to bite, more and more Britons are accessing their retirement cash early. Unfortunately, this has also made them a target for scammers. If you’re thinking of accessing your retirement cash early, be sure to do your research and only use reputable companies.
And if you’re approached by someone offering too-good-to-be-true deals on pension release, don’t hesitate to report them to the authorities.
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