Donna Walsh, Head of Master Trust at Standard Life, said: “With less than a year to go until unused pensions are brought into the inheritance tax regime, many savers will understandably be reassessing how their retirement savings are structured and passed on. Our research shows this is already driving concern with one in five (22%) saying they have less confidence in pensions as a result of these changes, of which over half (54%) are worried that their beneficiaries could face higher inheritance tax when they die as a result1. However, periods of heightened uncertainty can also make individuals more vulnerable to scams, particularly where decisions are rushed or poorly informed.
“Even though these changes won’t affect everyone in the same way and for many people, their pension savings simply won’t be large enough to fall into inheritance tax at all, fraudsters may still try to convince them they need to act urgently. Scammers may use the opportunity to position themselves as offering ‘solutions’ to minimise inheritance tax, including promises to move pension savings into structures claiming to offer IHT-free outcomes. These propositions may sound credible, but they can expose savers to significant financial harm, with the average pension scam estimated to cost victims £47,0002, and in many cases losses are irreversible.
“Those with larger pots may be thinking about how best to pass on wealth, particularly where pensions could face inheritance tax and then income tax for beneficiaries. For some, that might involve longer-term planning or decisions about gifting, but there’s rarely a one-size-fits-all answer. What’s important is not being rushed into action – especially if someone is pushing a ‘quick fix’ or playing on fear.”
Early intervention is vital
Donna Walsh continued: “The tactics employed by scammers to part people from their pension savings are becoming increasingly sophisticated, and as member enquiries increase ahead of April 2027, providers and trustees need to ensure that protections against such activities keep pace. Pension scams are becoming increasingly sophisticated and can affect people whether they are building up their pension or starting to access it. There’s also a risk of fraudsters making greater use of artificial intelligence and deepfake tactics to make approaches look and sound more convincing. By the time a suspicious transfer reaches a provider, the customer is often already convinced they are making the right choice and can be difficult to dissuade. That’s why early, consistent intervention is so important. Across the industry, we need to ensure that our systems and due diligence keep pace with scam tactics and that savers are educated about the risks and warning signs throughout their entire savings journey, rather than relying solely on checks at the point of transfer.
“As we approach significant changes to how pensions are treated for inheritance tax purposes, clear communication, ongoing education and strong cross-industry collaboration remains critical to reducing scam risk and maintaining confidence in the pensions system.”
Key pension scam indicators:
Unexpected contact – Scams often begin with unsolicited emails, calls, or messages. Cold calling about pensions is banned, but fraudsters continue to ignore this.
‘Too good to be true’ offers – Social media adverts offering free pension reviews or promises of guaranteed or unusually high returns, particularly from unfamiliar or overseas investments, should raise concern.
Early access claims – Offers to access pension savings before the minimum age of 55 (rising to 57 from 2028) are a common scam tactic and may trigger significant tax penalties.
Pressure tactics – Scammers frequently create false urgency, claiming offers are time-limited or exclusive to rush decisions.
False legitimacy – Fraudsters may provide convincing documentation or direct members to fake websites. Scammers may use artificial intelligence or ‘deepfake’ technology to mimic real people, organisations, or even familiar voices. Even if a call, video, or message looks or sounds convincing, it’s important to independently verify who you’re dealing with by using trusted contact details or official websites such as the Financial Conduct Authority’s firm checker before taking any action.
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