Selling or unlocking a pension is a trend that has been sweeping the nation in the past few years. In most cases the move has provided a viable solution for cash-strapped individuals and families looking to access tax-free money to help ease the financial struggles they face in everyday life or to give them any extra funds they need.
Whilst release schemes are embraced by many pension providers, another more unsavoury group of people are also targeting those under 55 to release their own form of tax-free cash! High risk scams masquerading as early pension releases are quickly becoming a problem and those who have fell victim to fraudsters have been hit by tax penalties.
These scams are known as ‘liberation schemes’, and whilst pension unlocking does have its own risks, this option shouldn’t be confused with the illegitimate liberation scams. Fraudsters offering pension liberation often approach their victims by cold calling so do not indulge them by giving bogus callers any personal or financial details. If you are serious about releasing cash from your pension, any company that you approach or makes contact with you should be thoroughly checked out.
Complete background checks on the company before committing to any release scheme with the help of the Financial Services Authority (FSA). It’s also worth seeking help from a professional financial advisor that is independent from the company. Ask the company to provide you with as much details as possible regarding how an early pension release will affect payments later in life. Legitimate companies will be all too happy to provide you with a breakdown of how your pension will be divided after retirement age. Never make rushed decisions when it comes to these release schemes to avoid scam slip-ups.
Whilst release schemes are embraced by many pension providers, another more unsavoury group of people are also targeting those under 55 to release their own form of tax-free cash! High risk scams masquerading as early pension releases are quickly becoming a problem and those who have fell victim to fraudsters have been hit by tax penalties.
These scams are known as ‘liberation schemes’, and whilst pension unlocking does have its own risks, this option shouldn’t be confused with the illegitimate liberation scams. Fraudsters offering pension liberation often approach their victims by cold calling so do not indulge them by giving bogus callers any personal or financial details. If you are serious about releasing cash from your pension, any company that you approach or makes contact with you should be thoroughly checked out.
Complete background checks on the company before committing to any release scheme with the help of the Financial Services Authority (FSA). It’s also worth seeking help from a professional financial advisor that is independent from the company. Ask the company to provide you with as much details as possible regarding how an early pension release will affect payments later in life. Legitimate companies will be all too happy to provide you with a breakdown of how your pension will be divided after retirement age. Never make rushed decisions when it comes to these release schemes to avoid scam slip-ups.
