Pension liberation

Changes to pensions that came into effect in April 2015 mean that from age 55 onwards you can get access to as much of your pension money as you like, when you want it - though this is rising to age 57 from 2028).

Despite these changes, the cruical fact still remains that you can only get access to your pension pot when you turn 55 (57 from 2028). This means that 'pension liberators', who claim you can gain access to your pension money sooner, are trying to get you to break the law.

• Pension liberation

  Pension liberation's a scam that claims to release cash from people’s pension pots before they reach age 55. Promises of early cash are false and are likely to result in you paying big bills, in some cases leaving people with no savings for retirement.

  Victims are usually contacted by email, phone or text by fraudsters trying to trick them into transferring their pension funds to bogus arrangements for a commission fee.

• Scams for over 55s

  
  It's not just the under 55s that are being targeted in the pension freedom world. Over 55s are being contacted by fraudsters looking to take advantage of people's interest in the change in the law. If you are cold called by someone offering to give you a free pension review, it's almost definitely a scam, so put the phone down. 
  
  Just like with pension liberation, the fraudsters will transfer your pension fund into an investment with attractive BUT often unrealistic returns, meaning you will lose your hard-earned cash.

  If this happens you won't be charged the whopping 55% tax that you would for accessing your pension money early, but the scams can be just as detrimental to your money. If you're unsure whether something is legit, you could check the Government's ScamSmart website. It quite simply tells you to follow three simple steps to stay safe with your pension money:

  1. Reject cold calls – investment scammers will often cold call.

  2. Check the FCA Warning List for a list of firms to avoid.

  3. Get impartial advice.