No-one really enjoys receiving cold calls, so we’re happy to report that a new law from the government will enforce fines up to £500,000 on companies that contact individuals about their pensions on the phone without their prior consent.
In addition, we have learned that the ban will also cover contact by SMS text message and emails.
The new rules haven’t come into effect yet but are to be tabled as soon as the government is able to process them, and will reduce the risk to individuals of being conned out of their pension or persuaded to sign up to schemes that may not necessarily be beneficial to them.
BBC News quoted the former pensions minister, Ros Altmann, on the subject: “The sooner the government acts, the sooner we can improve protection for people’s pensions. We will never stop such fraudsters completely, but these measures will certainly protect the public better – about time too.”
The changes in 2015 that gave pensioners more control over how their funds are used and managed had the unfortunate side-effect of allowing scammers to trick people into handing over large sums of money.
Naturally we would always guide individuals to seek professional pensions advice from a reputable, FCA-authorised provider who will have their customers’ best interests at heart.