The Pensions Regulator, HMRC and the Financial Services Authority have joined forces to publish a warning to consumers about early release pension offers which are currently being marketed. The warning urges consumers not to be taken in by website promotions, adverts or cold callers encouraging them to transfer their existing pension fund to a new arrangement in exchange for a loan or cash payment.
The warning also tells consumers of the potential financial impact of entering into these types of arrangements and the significant tax charges which may be incurred.
There has been media interest in this over the weekend with related articles appearing in the weekend news papers, the internet and also on Radio 4’s Moneybox.
If you are aware of anyone selling these types of arrangements please contact the FSA via their Consumer Helpline on 0845 606 1234, HMRC’s Pensions Anti Fraud Unit on 0115 974 2147 or The Pensions Regulator on 0845 600 0707. Please provide as much information as you can about the services and the firms involved, including their contact details and ‘firm reference number’ (FRN) if they claim to be authorised by the FSA.
If you are aware of anyone tempted to enter into such an arrangement please ask them to contact the FSA or The Pensions Regulator on the numbers given above, or the Pensions helpline on 0845 600 2622.