You can read more about the State Pension at www.gov.uk/state-pension. If you haven’t yet reached your State Pension age, you can find out whether you’re eligible and when you’ll be able to claim it.
In April’s budget, the Chancellor announced that the Lifetime Allowance for pension savings would be frozen for five years at the current level of £1.073 million. The Lifetime Allowance limits the amount of pension you can build up across all the schemes you’re part of before being subject to an additional tax charge.
There’s also an Annual Allowance that limits how much you can pay into pension schemes in a year and still receive tax relief. This remains at £40,000 for 2021/22. If you’re a high earner, you may have a lower, tapered Annual Allowance.
Pension scams: staying alert and keeping safe
The last year has seen an increase in pension scam activity. The tactics that scammers use are evolving all the time, but there are some red flags you can easily look out for to avoid falling victim to a pension scam.
Reject unexpected offers - If you’re contacted out of the blue about a pension opportunity it’s likely to be high risk or a scam. Be wary of any free offers! If you receive a marketing call about your pension the best thing you can do is hang up. Also watch out for text messages with misleading links. Scammers will try to entice you any way they can.
Don’t be pressured or rush into anything - During the current climate you may be worried about how your pension is performing. It’s important you don’t rush into a decision, as criminals try to take advantage of any fears you may have. If you do make any decisions, take your time, do your research and make sure that your pension is safe.
Always check who you’re dealing with - Check the Financial Services Register to find out if the company contacting you is registered by the Financial Conduct Authority (FCA). Be wary of ‘clone’ companies using a similar name. If in doubt check the register and use the contact details shown there – not the ones given to you.
Get help and advice - If you are seriously considering changing your pension arrangements then consider getting financial guidance or advice before you act.
ScamSmart is an FCA-regulated website providing information on how to avoid investment and pension scams. Visit www.fca.org.uk/scamsmart for more information.
