With less than one year until unused pensions fall into the scope of inheritance tax, Standard Life highlights how uncertainty could leave some savers more vulnerable to pension scams Taking time, checking details and seeking guidance can help protect retirement savings
With pensions set to move into inheritance tax (IHT) rules from April 2027, many people are reassessing how their retirement savings are structured and passed on to loved ones. While engaging with pension planning is positive, research from the retirement specialist Standard Life reveals a high level of concern about these changes - one in five (22%) say they feel less confident about pensions as a result, and over half (54%) are worried their beneficiaries could face a higher inheritance tax bill when they die¹.
Against this backdrop, Standard Life warns that periods of change and uncertainty can increase the risk of pension scams - particularly if people feel rushed into decisions or act without trusted support.
Mike Ambery, Retirement Savings Director at Standard Life said: “With less than a year to go until inheritance tax applies to unused pension pots, it’s understandable that many people are reassessing how their retirement savings are used and passed on. However, scammers thrive on fear and uncertainty - when people feel unsettled or rushed, they’re more likely to fall victim to a scam.
“As we move closer to the rule change, fraudsters are likely to prey on any confusion, perhaps presenting themselves as offering so-called ‘solutions’ such as moving pension savings into arrangements that claim to avoid inheritance tax altogether. Offers like these might sound reassuring, but they can put people’s retirements at serious risk – the average pension scam costs victims around £47,0002.
“It’s worth being aware that these changes won’t affect everyone in the same way - and that’s something scammers could be quick to exploit. For many people, their pension savings simply won’t be large enough to fall into inheritance tax at all, but fraudsters may still try to convince them they need to act urgently. At the same time, 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.”
Mike added: “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. When it comes to pensions, slowing down and asking a few extra questions can make a real difference. Staying informed, checking who you’re dealing with and seeking financial advice or guidance before making big decisions can help to protect your retirement savings. Taking time and getting the right support can make all the difference to long‑term retirement outcomes.”
Mike Ambery outlines key warning signs to look out for and steps you can take to help avoid pension scams:
1. Be cautious of unexpected contact: “Pension scams often begin with out-of-the-blue emails, calls or messages. Even though cold-calling about pensions is banned, scammers may still try to make contact in this way, so it’s important to treat unsolicited approaches with caution.”
1. Watch out for ‘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 concerns. Pension investments carry risk, so offers that sound risk-free are unlikely to be genuine.”
1. Avoid early access offers: “If you’re told you can access your pension savings before the minimum age of 55, rising to 57 from 2028, this could be a sign of a scam. As well as putting your savings at risk, it may also result in a significant tax bill.”
1. Be aware of pressure tactics: “Scammers may try to rush decisions by suggesting an opportunity is time-limited or exclusive. Taking time to think things through and seeking a second opinion can help you avoid making decisions you might regret.”
1. Check who you’re dealing with – and verify it yourself: “Before taking any action, it’s important to confirm the firm or adviser’s credentials using reliable sources such as the Financial Conduct Authority’s firm checker . Don’t rely solely on information provided to you - carry out your own research to ensure they’re authorised and that protections are in place.”
1. Be cautious of convincing voices, videos or messages: “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 before taking any action.”
1. Consider getting financial advice: “If you’re thinking about making changes to your pension, taking regulated financial advice can help ensure decisions are right for your circumstances. If you don’t already have an adviser, services like MoneyHelper can point you in the right direction.”
1. Stay informed about the latest scams: “Keeping up to date with common pension scam tactics can make them easier to spot. Resources like ScamSmart , MoneyHelper and the National Cyber Security Centre offer practical guidance to help protect both your savings and your personal information.”
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