Almost eight out of 10 retirement savers want increased power for pension companies to help prevent fraud.
Research by The People’s Pension found that 78 per cent of pension savers want providers to be able to stop a transfer if fraud is suspected.
Nearly half (49 per cent) of those surveyed strongly agreed that pension companies should be able to intervene in these cases.
These findings come as the government is being asked to consider including an amendment to the Pension Schemes Bill, which would enable pension companies and trustees to halt a transfer out of a scheme if it triggered any one of a number of ‘red flag’ warnings.
Concerns have been raised that the coronavirus pandemic increases the risk that fraudsters will attempt to deprive savers of their retirement savings and the survey found that one in five (20 per cent) UK adults with a pension are now more worried about being a victim of a pension scam compared to a year ago.
The same poll, conducted by YouGov, also showed that just over a third (34 per cent) of UK adults are more worried about being a victim of some sort of financial scam now compared to 12 months ago.
The People’s Pension director of policy Phil Brown says: “The overwhelming consensus from the general public is that pension companies should be given the legal power to put the brakes on a transfer they think might by fraudulent.
“As it stands, providers and trustees can merely advise a customer when their suspicions are aroused and our research shows that £31m of transfers went ahead last year even after the savers were made aware of these concerns.
“The industry needs the support of policy makers if it’s to win the war against merciless fraudsters.”
This week former pensions minister Baroness Ros Altmann will chair a webinar – Who is protecting my pensions? – to discuss what can be done to stop fraudsters.
She will be joined on the panel by Margaret Snowdon, the chair of the Pensions Scams Industry Group (PSIG), Stephen Timms MP, the chair of Parliament’s Work and Pensions Committee, and Brown from The People’s Pension
Timms has proposed amendments to the Bill which would hand greater powers to trustees. Although those were formally withdrawn at committee stage last week, the Government has committed to cross-party talks on the issue ahead of November 16, when the Bill reaches its final stages.