Recent reports suggest that transfers may not be legitimate. With so much at stake, it’s essential to be aware of the warning signs of a scam and take precautions to protect your money. So what’s behind this uptick, and how can you avoid scamming? Keep reading to find out.
A report from XPS Group’s Scam Protection Service announced that 94% of pension transfer cases reviewed in July 2022 had at least one scam warning sign a decrease from the 97% in June.
According to the firm, the overseas investment amber flag has been identified in over 90% of cases for the second consecutive month. As of June 2022, there were 41 pension transfers per 100,000 members – a 41% increase from June 2022. Despite the rise in transfers, XPS said the rate is still “far below” what it has seen in recent years.
The Transfer Value Index of XPS Pension Group slightly improved at $210,000 ($248,000, €249,000) at the end of July despite a decline of six months. Over the same period, gilt yields declined slightly, which caused the firm’s small increase. Even though this is the first increase of 2022, the XPS Transfer Value Index remains 22% below its December 2021 high.
Changing Market
The ongoing cost-of-living crisis will place significant pressure on household finances for many pension scheme members. The number of members transferring has increased in the last month, possibly as a result of their increased income needs. To ensure that members make the right decision, it is crucial that they receive appropriate support, including unbiased advice.
The Pension Regulator is well-aware of the dangers that come with fraudulent activities in the pension industry. Despite this, it remains steadfast in its commitment to educating members and trustees about potential scams, coordinating scam-fighting intelligence, and prosecuting offenders. As a responsible individual or business owner, it’s important to stay up to date on the latest news so you can protect yourself against any future threats. If you’re not sure whether an offer is too good to be true, do some research or speak with your financial advisor before taking any action. And remember, if something sounds fishy, it probably is.
Find out how SJB Global can help you be proactive in safeguarding your pensions.
