Members of pension schemes have been urged not to be ‘taken in’ by website promotions and newspaper ads encouraging them to transfer an existing pension to a new arrangement in return for a cash payment.
Members of pension schemes have been urged not to be ‘taken in’ by website promotions and newspaper ads encouraging them to transfer an existing pension to a new arrangement in return for a cash payment.
‘These schemes usually work by transferring some of the member’s pension fund into highly risky or opaque investment structures, frequently based overseas – with no guarantee that members will get their money back if something goes wrong,’ said HMRC, the Pension Regulator and the Financial Services Authority in a joint statement. ‘By accessing pension savings earlier than the law permits, individuals are likely to be poorer in retirement – and can face substantial tax charges.’
Members of pension schemes have been urged not to be ‘taken in’ by website promotions and newspaper ads encouraging them to transfer an existing pension to a new arrangement in return for a cash payment.
Members of pension schemes have been urged not to be ‘taken in’ by website promotions and newspaper ads encouraging them to transfer an existing pension to a new arrangement in return for a cash payment.
‘These schemes usually work by transferring some of the member’s pension fund into highly risky or opaque investment structures, frequently based overseas – with no guarantee that members will get their money back if something goes wrong,’ said HMRC, the Pension Regulator and the Financial Services Authority in a joint statement. ‘By accessing pension savings earlier than the law permits, individuals are likely to be poorer in retirement – and can face substantial tax charges.’
